CO129-372 - Public Offices - 1910 — Page 296

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[This Document is the Property of His Britannic Majesty's Government.]

294

C O

OPIUM.

CONFIDENTIAL.

[June 6] 20142

SECTION 2

RoGP 1 JUL 10

[20215]

Sir,

No. 1.

India Office to Foreign Office.--(Received June 6.)

India Office, June 4, 1910. I AM directed by the Secretary of State for India in Council to acknowledge the receipt of your No. 18616, giving cover to telegrams to and from Mr. Max Müller regarding alleged additional taxation in Canton.

In reply, I am to say that Mr. Max Miller, in stating that "the Indian Government appear to contemplate giving Chinese Government a free band to increase taxation on Indian opium on sole condition of corresponding and effective increase in taxation of native article," has somewhat misunderstood the nature of the condition or reservation expressed in paragraph 13 of the extract accompanying this Office's letter, dated the 6th April, 1910, to you on the subject of proposing to the Chinese Government an extension of the existing three years' agreement about Indian opium. The paragraph in question had reference only to the consolidated import duty on Indian opium, and was meant to reassert the position taken up in 1907 that the Chinese Government's proposal to double the existing duty of 110 taels could not be entertained unless or until the taxation of the native article had been similarly increased. It was not intended to suggest that the protection afforded to Indian opium against provincial taxation in China by the additional article to the Chefoo Convention should be waived.

This matter will be further discussed in replying to your letter dated the 25th May, 1910, on the subject of Mr. Max Müller's telegram No. 95. Meanwhile, I am to suggest that pending instructions on that telegram Mr. Max Müller should be directed to continue to act on the assumption that no change is contemplated in the treaty rights secured by the additional article, and to instruct the consul-general accordingly. So far as Lord Morley is able to judge, the consul-general's protest is in general conformity with the attitude observed by His Majesty's Government in similar cases. Mr. Max Müller might also be requested to report any new developments in the situation at Canton.

&c.

am,

COLIN CAMPBELL.

[2793 f-2)