CO129-373 - Public Offices - 1910 — Page 308

[This Document is the Property of His Britannic Majesty's Government.1307

OPIUM.

CONFIDENTIAL.

C O 34282

[September 21.]

PLC2

SECTION 1.

Rraf & NOV 10.

No. 1.

}

[34274]

Mr. Max Müller to Sir Edward Grey.--(Received September 21.)

(No. 157.) (Telegraphic.) R.

Peking, September 21, 1910. MY telegram No. 153 and despatches Nos. 299 and 303, posted 8th September. His Majesty's consul at Amoy reports the imposition of the tax on prepared opium. He has requested withdrawal, and I have addressed a strong protest to the Wai-wu Pu.

In spite of renewed verbal representations on 16th September I can get no reply to the memorandum or note mentioned in my telegram No. 153, nor can I extract a definite answer as to prolongation of the agreement in regard to Indian opium, though Mr. Liu at discussion on 14th September admitted that that was only practical course. He submitted a proposal that duty and li-kin on foreign opium should be fixed at 30 per cent. ad valorem on the present price, native opium to pay taxes at the same rate. In the event of acceptance there would be no difficulty in withdrawing objection to Kwantung regulations. The proposal as submitted was too vague even for discussion, and I said that I would proceed no further in regard to this point till the question of three years' prolongation of the agreement was settled. At my interview on 16th September I referred to the possibility of His Majesty's Government denouncing additional article to Chefoo Convention (see your telegram No. 111), but I do not like to put this in writing, as it appears to Sir A. Hosie and myself that the effect of such a step would be that after payment of 30 taels import duty we should lose all control of the opium, the transit due on which would be fixed at [? whatever] Chinese Government see fit.

I would suggest that I be authorised to state that until objectionable regulations are withdrawn we can consider no proposal for the enhancement of the duty, nor can we agree to the prolongation of the agreement till we are assured that the trade in foreign opium in the treaty ports will not be subjected to arbitrary exactions. I would further suggest that I be authorised to intimate that it would be highly advisable that Mr. Liu should terminate the negotiations with me before he proceeds to London as the Minister, which he is anxious to do in three weeks.

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