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In
The explanation vouched for in the 3rd paragraph that the ball of opium purchased on the 7th June did not pay the additional illegal tax until three days after purchase will not bear examination as the receipts show the proper tax and the new illegal tax, or levy, were paid on the same day viz: 10th June, and in the Treaty Port of Canton whether other than the tax agreed to by the additional article of the Chefoo Treaty is illegal. The Claim put forward thathe case
mentioned is an incorrect one and is not in accordance with facts.
Regarding the attempt to deny the existence of a monopoly contained in paragraph 4, the answer is clear. No firm can pro- fitably deal in opium unless at a disadvantage, which is understood to be equal to a rebate of 20% of the amount of the new tax, until it takes shares in the Monopolist Company. It is clear that they
would either have to go out of business or join the combination. It
is idle to argue that the contention put forward in this respect is
not a puerile one.
whatsoever.
All Great Britain has agreed to is to reduce its sales of Indian Opium for export in equal portions for the next 10 years which China must regard as a very great concession to give for no payment
What China has no right to do is to place any restrictions on the sale of such opium as is bought by dealers, and only if it can prove that Great Britain is not keeping to her contract can she exact
reprisals.
The Committee of this Chamber see no reason to retract from
the position they have taken up in this matter and they ask that His Majesty's Government demand from China respect and compliance with the Treaties she has entered into, and they trust that His Excellency the Officer Administering the Government will see his way to continue
his support to their contention.
Since writing the above, the Committee has been informed
that the proposed extension of the Canton system to Swatow has now
become an accomplished fact, and that raw opium bearing Custom's
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