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number of existing dealers in raw opium, and to prevent new firms from coming into existence, do amount to a breach of the Treaties. They consequently view with considerable uneasiness the attitude taken up by His Majesty's Minister at Peking in this matter, as they fear that this cannot but result in encouraging the provincial officials to still further aggressive acts against foreign trade.
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My Committee therefore wish to join with the writers of the previous letters in their protest against the enforcement of the regulations complained of, and trust that after full consideration of the matter, his Excellency will see his
way represent this in the proper quarters, with a view to a repeal of the new opium regulations.
In conclusion, I would beg to refer to the Chairman's letter to you of the 3rd September, 1907, when dealing with the attempted monopoly in raw opium which the Viceroy at Nanking was then endeavouring to establish. In the opinion of my Committee the present position taken up by the Viceroy of the Two Kuang will have an equally restricting effect upon the trade as that attempted by the Nanking authorities, and the arguments in the above letter apply therefore equally in the present case.
I have, &c. (Signed)
Sir,
Inclosure 3 in No. 1.
E. A. M. WILLIAMS.
Sir J. Jordan to Governor Sir F. Lugard.
Peking, February 5, 1909. I HAVE the honour to acknowledge the receipt of your Excellency's despatch of the 14th January, inclosing a letter from the Secretary of the Hong Kong Chamber of Commerce, in which the opinion is expressed that the regulations which were being enforced to limit the number of existing dealers in raw opium in the Two Kuang provinces, and to prevent new firms from coming into existence, amount to a breach of the Treaties.
My view was that the regulations which were being enforced at Canton were practically only a reproduction of those framed for carrying out the Opium Ediet of the 20th September, 1906, and your Excellency, while apparently concurring in this opinion, held that the latter rules were themselves in some respects a violation of British Treaty rights.
I have dealt with this point in a despatch to His Majesty's Secretary of State, a copy of which was forwarded to your Excellency in my despatch of the 8th January, and, pending the receipt of Sir Edward Grey's instructions, I regret that I do not see my way to departing from the attitude which I then assumed.
As your Excellency will have learned since your despatch now under acknow- ledgment was written, the new Regulations have not, as a matter of fact, been enforced in the Canton Prefecture. In his despatch of the 18th January, copy of which was sent to you, Mr. Fox, the Acting Consul-General at Canton, states:-
"The new Regulations have not been enforced in the Canton Prefecture as regards the raw opium trade. In Canton the authorities have so far placed no restrictions on the free import and sale of raw opium. Opium-boiling shops are licensed as heretofore by the Opium Guild, who pay a lump sum of 48,000 dollars per annum to the Government in commutation of licence fees. This sum formerly amounted to 100,000 dollars, but was reduced in March 1908 owing to the closing of the opium divaus in Canton and the consequent decrease in the amount of opium dealt with.
"In some of the outlying Prefectures, notably in the Swatow district, attempts have recently been made by the local authorities to regulate and restrict the sale of raw opium. The protests of the Hong Kong opium merchants were, as reported in my despatches Nos. 51, 53, 63, and 66, communicated to the Viceroy, who has, I understand, given orders that the now Regulations are not, for the present, to be applied to the raw opium trade."
Mr. Fox points out that the total import of Indian opium into Canton amounted in 1908 to 10,948 64 piculs, valued at 7,219,505 Haikuan taels, as against 10,355 73 piculs in 1907, valued at 5,138,869 Haikuan taels. The figures for the
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quarter ended the 31st December last, during which these Regulations were supposed to be in force, were 2,356 pienls, valued at 1,686,781 Haikuan taels.
While there was therefore a slight decrease in the quantity of Indian opium imported during last year, there was a considerable rise in the value. On the other hand there was, according to Mr. Fox, a marked falling off in the quantity of native opium coming down from Yunnan, Szechuan, and Kueichow. Mr. Fox concludes by saying that high prices for Indian opium have ruled throughout the year, and all the dealers have done exceptionally well.”
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A similar state of things seems to have prevailed on a much smaller scale at Swatow, where the import for 1908 was 563,466 lb., valued at 401,474., against 572,118 lb., of the value of 374,698, in the previous year.
The restrictive measures of which the Hong Kong opium merchants complain would seem therefore to have had no injurious effect upon the Indian opium trade in the Two Kuang provinces.
On the 4th January last I addressed a representation to the Wai-wu Pu setting forth the views of the principal importers of foreign opium upon the effect which the Regulations introduced in the Two Kuang and in Kiangnan would have upon their trade, and deprecating the establishment of anything in the nature of a monopoly as being contrary to Treaty. I suggested that the provincial authorities should be called upon to exclude foreign opium from the clauses in their Regulations which applied to the wholesale trade.
In their reply of the 14th January the Wai-wu Pu stated that the Regulations in Kiangnan applied only to native opium, and denied that any monopoly of foreign opium existed at Canton, where the system of wholesale houses had not been started.
Copies of this correspondence are inclosed for your Excellency's information.
I have, &c. (Signed)
Inclosure 4 in No. 1.
Sir J. Jordan to Prince Ch'ing.
J. N. JORDAN.
Your Highness,
Peking, January 4, 1909. WITH reference to previous correspondence regarding the measures taken in various provinces by the high authorities for controlling the sale and consumption of opium by a system of licences, I have the honour to present to your Highness the views of the principal importers of foreign opium upon the effect which the Regulations introduced in Kwangtung and Kiangnan will have on their trade.
Three importing firms consider that any regulation which seeks to confine the wholesale trade in foreign opium to a limited number of Chinese bongs is equivalent to granting a monopoly to these establishments, and, therefore, a contravention of Treaty. They submit that the importation of foreign opium is still a legitimate trade which can only be restricted under Agreement between the Governments concerned, and that any restriction of its sale goes beyond the scope of the arrangement which has been made for the gradual diminution of its export from India,
An examination of the Regulations issued at Canton and in Kiangnan shows that the apprehensions of the importers of foreign opium are well founded. The arrangement between Great Britain and China contemplates a gradual decrease in the export from India, but leaves the trade in China subject to existing Treaty provisions, and under these circumstances the application of prohibitive measures against the sale of raw opium imported by British firms is not only not sanctioned by any Agreement between the two Governments, but constitutes an infringement of the Treaty provisions which preclude the establishment of a monopoly.
I have the honour to request, therefore, that the provincial authorities in question may be called upon to exclude foreign opium from the clauses in their Regulations which apply to the wholesale trade,
I avail, &c. (Signed)
J. N. JORDAN.
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