[This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
(
CONFIDENTIAL
D
[22013]
No. 1.
(June 200 0
SEOT 20857
RECR
REG 8 JUL 10
(No. 173.) Sir,
Mr. Max Müller to Sir Edward Grey.--(Received June 20.)
Peking, May 31, 1910. WITH reference to my telegram No. 101 of the 25th instant, I have the honour to transmit herewith copy of the letter which I received from the Hong Kong Chamber of Commerce, forwarding a protest from the Indian opium importers against an alleged attempt on the part of the Kuangtung authorities to impose a new tax on foreign opium. The other documents mentioned in the letter of the chamber of commerce are included in the enclosed despatch from His Majesty's consul-general at Canton on the subject. The tax in question is of 30 cents per tael, imposed on all prepared opium, native and foreign, and collected in advance from dealers in raw opium, who are to give a guarantee and apply for a new licence which will be given to them in exchange for the old ones after their securities have been checked. The collection of this tax is to be farmed out to a Cantonese firm.
The Hong Kong Chamber of Commerce contends that this new tax constitutes a breach of clauses 2, 3, and 5 of the additional article of the Chefoo Convention of 1885, being an extra tax practically levied on unbroken packages of raw opium between the port of entry and the place of consumption after import duty and li-kin has been paid. They further allege that under the pretext of better regulation of trade the tax is really imposed solely for collection of more revenue. The merchants fear that in this way the same opium might be subjected to repeated taxation before it reaches the place of consumption, which the above-mentioned additional article was designed to prevent.
As will be seen from his enclosed despatch, His Majesty's consul-general holds that so long as this taxation is imposed equally on native and foreign opium, which appears to be the intention of the provincial authorities, the spirit of the additional article of the Chefoo Convention is not infringed. In order to preclude any misunderstanding Mr. Jamieson addressed a note on the 4th instant to the acting governor-general of the Liang Kuang, requesting his Excellency to remind the Opium Bureau of the provisions of the additional article to the Chefoo Convention, which lays down that there shall be no differential treatment of foreign opium, and, secondly, of the clause prohibiting the imposition of additional taxation at a treaty port on whole packages of opium which have paid import and li-kin dues.
The chamber of commerce desires strict adherence to the letter of the additional article, while Mr. Jamieson does not see his way to interfere so long as taxation on native and foreign opium is not differential.
In the meanwhile the tax, which was to have been levied from the 9th instant, has not, as far as I am informed, been enforced, and unless the viceroy should return an unsatisfactory reply to the above-mentioned note from His Majesty's consul-general, I do not propose to move in the matter without further instructions from you, and Í have so informed the Hong Kong Chamber of Commerce.
I have, &c.
W. G. MAX MÜLLER.
Enclosure I in No. 1.
Sir,
Hong Kong General Chamber of Commerce to Mr. Max Müller,
Hong Kong, May 7, 1910. I BEG to confirm my telegram of this date with regard to the new attempt on the part of the Canton officials to impose a tax on the foreign opium trade.
My message, which read as follows-" Kuangtung authorities imposing tax on prepared opium, but collected from and guaranteed by raw opium dealers, who must take out new licences; collection to be farmed out. Chamber of commerce consider this breach of additional Chefoo Convention. Request you consider question, make
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