CO129-367 - Acting Governor May - 1910 [6-7] — Page 153

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151

the tax has not yet been levied but that the trade has been reduced by one-fourth and the Hongkong Opium Merchants antici- -pate very serious financial loss in consequence.

In my previous letter and cablegram of 7th. instant, the Committee omitted to draw your attention to the fact that this proposed farming out of the tax virtually amounts to a monopoly but my cable under confirmation remedies this and points out that under Article 14 of the French Treaty of Tientsin with China of 1858 reading as follows:-

"Aucune société de commerce privilegiée ne pourra de- "-sormais s'établir en Chine, et il en sera de même "de toute coalition organisés dans le but d'exercer "une monopole sur le commerce. En cas de contravention "en present Article les autorités Chinoises, sur les "representations du Consul ou de l'agent consulaire, "aviseront aus moyens de dissoudre de semblables "apmociation dont elles s'efforceront d'ailleur de "prévenir l'existence par des prohibitions préalables, "afin d'écarter tout ce qui pourrait porter atteinte

"à la libre concurrence".

it would appear that the Canton Authorities have no right to form such a monopoly as is now contemplated.

It is not the intention of the Committee to labour the point of the illegality of the new tax as this method of raising revenue from the Foreign Agias Merchants is almost * a perennial one under various disguises and has been fully represented to your predecessors in office, notably in 1902, 1903, and 1907 (the latter in connection with the proposed monopoly at Nankin), and I will content myself now with merely referring Your Excellency to correspondence in those years MARIE

1

addressed to your Legation and of which you will necessarily be

in full possession.

I have only to add that similar previous

monopolies