[This Document is the Property of His Britannic Majesty's Govern O.
entirely to the Chinese population (expected to gradually decrease in numbers) the existence even to a small extent of the opium-smoking habit in our midst can only be regarded with grave concern.
19. In conclusion, it is suggested that great assistance would be rendered in the matter if concerted action were taken by countries interested, particularly in the direction of prohibiting the smoking of opium, of regulating its production, and of forbidding the export of the drug except for medicinal purposes.
It is considered the cultivation and distribution of opium should be undertaken by the Government of each country, and that private enterprise in that direction should be prohibited,
Melbourne, October 8, 1908.
P.S. Since the foregoing was written, a Bill to control the opium traffic in New South Wales has been introduced into the Parliament of that State.
Sir,
Inclosure 4 in No. 1.
Colonial Office to Sir C. Smith.
Downing Street, December 22, 1908 I AM directed by the Earl of Crewe to transmit to you for your information the accompanying copy of a Memorandum which has been received from the Governor- General of the Commonwealth, on the subject of the steps taken in the Commonwealth to prohibit the importation of opium.
2. It is understood that two copies of the Memorandum have been sent direct to His Majesty's Consul-General at Shanghae for communication to the Commission, and the Secretary of State for Foreign Affairs is being asked to instruct the Consul-General, by telegraph, to communicate the copies to you as senior member of the British Delegates.
3. It will be seen that paragraph 19 of this Memorandum repeats the suggestion to which reference is made in the third paragraph of the letter from this Office of the 4th December, and I am to request that in laying the Memorandum before the Commission, you will at the same time intimate that His Majesty's Government do not consider that the suggestion falls within the scope of the inquiry.
O
I am, &c. (Signed) H. W. JUST.
CHINA TRADE.
CONFIDENTIAL.
C
[43870]
No. 1.
1545
67
[December 16.]
SECTION 2.
Sir J. Jordan to Sir Edward Grey.-(Received December 16.)
(No. 522.) Sir,
Peking, November 24, 1908. THERE are some indications that the financial necessities of the Chinese Government are unusually pressing, probably on account of the fall in the price of silver and the larger provision required to meet the service of foreign loans, and I noticed in a Memorial, translation of which was inclosed in my despatch No. 517 of the 14th November, that the Board of Finance proposed to make good the deficiency, which it is declared has occurred in the revenue from native opium, by licence fees to be levied on each ounce of prepared and raw opium,
In a note of the 12th November I pointed out to Prince Ching that the proposal as it stood involved the additional taxation of foreign opium in Treaty ports, and requested his Highness to take steps to prevent the infringement of Treaty provisions. In a reply of the 20th November the Prince correctly quoted the proposal of the Board of Finance, which is clearly unrestricted and applicable to Treaty ports as well as the interior, but stated rather inconsequently that there was no question in it of the levy of the taxes in Treaty ports.
I have to-day again written to his Ilighness requesting that it may be placed beyond doubt that the Board of Finance's proposal does not contemplate any additional taxation of foreign opium in Treaty ports.
I have the honour to inclose, for your information, copies of the correspondence referred to above.
I havo, &c.
(Signed)
Inclosure 1 in No. 1.
Sir J. Jordan to Prince Ching.
J. N. JORDAN.
Your Highness,
Peking, November 12, 1908. IN a Memorial of the Board of Finance, which was published in the Chêng Chih Kuan Pao" of the 7th November, certain proposals for the levy of additional taxes were submitted with the object of making good a deficiency in the revenue obtained from native opium. Amongst other taxes the Board suggested that from the beginning of next year all purchasers of opium should be required to pay fees amounting in the case of prepared opium to 60 cash, and in the case of raw opium to 40 cash per tael weight. The contents of this Memorial were approved by an Imperial Decree of the 24th October.
Your Highness is fully aware of the benevolent attitude of His Majesty's Government towards the measures which are being adopted by the Chinese Government for the suppression of opium, and I am sure that your Highness will not misunderstand me if I venture to remind you that the above-mentioned taxes would be a contravention of Treaty provisions.
The treatment of foreign opium on importation into China is regulated by the Additional Article of 1885, and under that Article no tax whatever over and above the Tariff duty of 30 taels per chest, and li-kin not exceeding 80 taels per chest, is leviable in a Treaty port, or, in the case of foreign opium transported to the interior of China, until the packages made up in bond are opened at the place of consumption.
The taxes suggested by the Board of Finance would be leviable on foreign opium in a Treaty port and before reaching the place of consumption in the interior, and for that reason it is my duty to request your Highness to take the matter into immediate consideration with a view to preventing a manifest breach of Treaty stipulatious.
Requesting the favour of an early reply, I avail, &c.
(Signed) J. N. JORDAN.
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