CO129-372 - Public Offices - 1910 — Page 601

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

OPIUM.

CONFIDENTIAL.

27094

Rece

[July 30.1EP 10

SECTION 1.

597

[27094]

No. 1.

(No. 111.)

(Telegraphic.) R.

Sir Edward Grey to Mr. Max Müller.

Foreign Office, July 30, 1910. YOUR despatch No. 210 of 24th June: Opium tax at Canton. India Office understand that the tax for the levy of which the regulations provide is levied from "prepared opium" merchants, whether settled within the limits of the treaty port or outside those limits in other towns in the province.

As regards "prepared opium" dealers within the treaty port, the levy from them of the tax would appear to be a clear infringement of the Chefoo Convention according to the interpretation placed upon its provisions in the past (see Sir J. Jordan's note of the 2nd January, 1909, to Wai-wu Pu).

Articles 4 and 7 of the regulations seem devised to get round the stipulation in the Chefoo Convention that no local tax shall be levied on opium so long as it is in unbroken packages and under seal.

You should urge the Wai-wu Pu to issue instructions without delay for the with- drawal of article 6 of the regulations, so far, at any rate, as it applies to treaty ports, drawing attention to the views of His Majesty's Government on this point, and at the same time state that His Majesty's Government regard articles 4 and 7 as likely to interfere with the wholesale trade in foreign opium, and are thus an infringement of the additional article of the Chefoo Convention.

It should be made clear to Chinese Government that if existing arrangements as to the import of foreign opium are not considered satisfactory, matter is

one for negotiation with His Majesty's Government, who are prepared to consider question in a reasonable light. Chinese Government are not, however, at liberty to take action setting aside treaty engagements without previous agreement with His Majesty's Government.

You may,

if you consider it likely to have any useful result, hint that if Chinese Government persist in their present attitude of obstruction on opium question, His Majesty's Government may have to consider the desirability of denouncing the Chefoo additional article. On the other hand, if they will withdraw the regulations and undertako to observe fairly the existing treaty obligations, His Majesty's Government is prepared to agree to enhancement of import duty.

[27094]

(No. 112.)

(Telegraphic.) R.

No. 2.

Sir Edward Grey to Mr. Max Müller.

MY immediately preceding telegram.

Foreign Ofice, July 30, 1910.

Is it true that Wai-wu Pu has undertaken to inform Viceroy that tax is illegal, as reported by Messrs. Sassoon and Co. ? If illegality has been admitted, it should be within power of the Chinese Government to make repeal of the tax effective, and they may be properly pressed to do so.

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