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him the gravity of the situation, but it is very clear to us that there is some misunderstanding about our representative's views on the matter, seeing that the impression recorded by His Majesty'e Consul General is diametrically opposed to the strong opinion held and expressed by both our representative and our-
selves.
We learn that at this interview His Majesty's Consul General not only refused to intervene, maintaining that the new Tax is no breach of Treaty unless it is differential, but even expressed the view that China has a perfect right to take any measures regarding foreign opium, even as far as preventing sale, providing the measures taken are non-differential.
During the last few years, the Kwangtung Authorities attempted to levy similar taxes, and were only prevented from doing so by His Majesty's Minister at Peking, who held that they were contrary to the additional articles of the Chefoo Conven- tion, and in this the then Consul General at Canton concurred. If in the past, these Taxes were considered to be illegal and an infringement of Treaty Rights, we cannot understand how His Majesty's present Consul General can maintain that in the pre-
sent instance, such is not the case.
The payment of Duty and Likin is, according to the Treaty, to free the Opium from any further Taxation while in transit to the Interior, and the question of non-differential Taxes only applies when the Opium reaches the place of consumption Surely His Majesty's Consul General cannot maintain that a port of entry such as Canton is the place of consumption for all the Opium sold there, when as a fact it find its way all over Kwong Tung only a small percentage being consumed in Canton.
The new tax although nominally leviable on prepared opium, is collected on raw opium at a specific rate of $77. per ball whilst in transit, whereas the Chefoo Convention in
Articles 2, 3 and 5 of the Additional Articles, clearly states
that
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