CO129-367 - Acting Governor May - 1910 [6-7] — Page 167

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accords

the Chefoo Agreement as one of the clauses on which the Committee

rely.

The reason for the Chamber of Commerce addressing you direct on this subject is, I think, fully explained in the above message.

Before commenting on this I will briefly state what led up

to the necessity for our sending this telegram.

Early in May a proclamation was issued by the so-called "Bureau for the suppression of opium" stating that on the lat of the Moon (9th May) the Chinese Authorities would impose a new tax amounting to the equivalent of $ 300. per chest which would be levied on prepared opium and that the raw opium dealers would

Further that two of the be responsible for this new impost. largest dealers were to undertake the task of supervising the

All dealers in raw opium carrying out of these new regulations.

were ordered to comply with the regulations and if found acting contrary would be deprived of their licences and their business

closed.

1

One of the conditions imposed upon the dealers was that

their old licences were to be cancelled and new licences, without

which they could not carry on business, were to be obtained from the one Chinese firm ultimately selected by the Opium Bureau to act

as sole Government farmers.

The grounds on which the Chamber of Commerce base their

assertion that the "above constitutes a serious breach of the

Treaties are:

First that a Government monopoly for the sale of Raw Opium has now been created, as no merchants can deal in raw opium in Kwangtung without agreeing to observe all the regulations laid down by the Opium Farmer from whom he must obtain his licence. That an opium monopoly is admitted is clearly shown by the heading of the regulations for the management of the opium licence monopoly

published in Canton and attached to the letter from the British

Merchants, dated 8th June.

This