CO129-373 - Public Offices - 1910 — Page 311

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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No. 303 of the 8th instant. I telegraphed the substance of this note to you yesterday in my telegram No. 159, and I need not therefore discuss its contents further here beyond drawing attention to the change in tone and the expression of appreciation of the attitude of His Majesty's Government.

On the 25th September Mr. Liu, in my absence, left at the legation the memo- randum of which I now enclose a translation, and the substance of which I had the honour to telegraph to you in my telegram No. 161 of to-day's date. The proposals of the Chinese Government, though three in number according to this memorandum, amount really only to two, as proposal three in covered by proposal two.

These two proposals may be summarised as follows :-

1. The renewal of the 1907 agreement shall be, not for three years, as proposed by His Majesty's Government, but for seven, so that it may continue in force until the conclusion of the period of ten years originally fixed for the total abolition of the production of opium.

2. The Chinese Government propose to take advantage of the permission granted to them in 1907, and to dispatch an officer to Calcutta to watch the opium sales. They now suggest that His Majesty's Government should further authorise this officer to watch the packing of the drug, to issue" conveyance certificates" for all opium exported to China, and to affix a seal to every chest thus exported up to the number of chests allowed to be exported in the year. His Majesty's Government are further to agree that the Maritime Customs may refuse to permit the entry into China of any chests not provided with such a certificate and duly sealed. In the event of His Majesty's Government consenting to such an arrangement, the Chinese Government will invite the adherence of the other Fowers, and will request them to make it binding on their nationals.

As I have already stated in my telegram No. 162 of to-day, both Sir A. Hosie and I are in favour of concluding the new arrangement for seven years instead of for three, subject, of course, to a proviso that His Majesty's Government are free to denounce the agreement if China fails to perform her share of the bargain, the mere The Chinese right of protest suggested by the Wai-wu Pu being obviously insufficient." Government would be precluded by their present request from demanding any reduction of the period of ten years originally contemplated, and we should be furnished with a satisfactory reply to the faddists who accuse Great Britain of continuing to force Indian opium on China if we could state that we had agreed to the total abolition of the import of Indian opium into China in the term of years requested by the Chinese Government. The measures suggested by the Wai-wu Pu for securing that the number of chests imported into China should correspond with the number of chests exported from India are, I submit, worthy of favourable consideration, as they appear to me to afford a practical and fair means of assisting the Chinese Government, who, I feel convinced, did not in 1907 realise that a certain portion of the 16,000 chests of Indian opium not affected by the annual reductions would find their way to China, and I consider that His Majesty's Government are morally bound to take such steps as may be possible to obviate what anyhow might be interpreted as an injustice to China. the same time I pointed out to Mr. Liu, at an interview I had with him yesterday, that the officer whom they proposed to send to India would be allowed no powers of interference, and that the issue of the export permits and the sealing of the chests would be undertaken exclusively by officials of the Indian Government, though there would probably be no objection to the presence of the Chinese officer during the various formalities.

At

I think that, in order to fully explain the proposals which I venture to submit for favourable consideration, I cannot do better than to enclose a draft of the reply which I have drawn up in consultation with Sir A. Hosie, and which I would address to the Wai-wu Pu with reference to their memorandum of the 25th instant, as soon as I receive the necessary authority thereto.

In determining the date after which chests of opium not so sealed and unaccom- panied by a permit may be refused entry into China, a sufficient period will have to be allowed to permit of the proper clearance of all opium already exported from China to India or for consumption in China that may be in stock in Hong Kong, or elsewhere, or in transit from India,

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Enclosure 1 in No. 1.

Memorandum communicated to Mr. Max Müller by Wai-wu Pu.

(Translation.)

THE consolidated import duty on opium was fixed by the additional article of the Chefoo Couvention, 1876, at 110 taels on every 100 catties. At that time the price of opium was only a little over 300 taels per 100 catties, and the duty therefore was really computed as 30 per cent. ad valorem. The price of opium is now several high as it was at that time, and it is therefore right that arrangements should be made with regard to the enhancement of the consolidated import duty.

times as

Accordingly it is proposed that a new consolidated opiam import duty shall be fixed at 30 per cent. ad valorem on the present price of the drug, while native opium shall in the same way pay total taxes at the same rate (30 per cent. ad valorem).

In the event of His Majesty's Government consenting to the above proposal no difficulty will be found in coming to a satisfactory arrangement with regard to the passages objected to by His Majesty's Government in the new Kwangtung Opium Regulations which are now in force.

(Ministers of the Wai-wu Pu.)

September 10, 1910.

(Translation.) Sir,

Enclosure 2 in No. 1.

Prince Ching to Mr. Max Müller.

September 21, 1910. I HAVE the honour to acknowledge the receipt of your note of the 7th instant in which you state (here quotes Mr. Max Müller's note of the 7th September in full, to "either be withdrawn or I explained at length' omitting paragraph 1 from modified." and paragraphs 2 and 3).

With reference to the new opium regulations issued by the province of Kuangtung, my board bas telegraphed on more than one occasion to the Kuangtung Viceroy urging him to devise some other procedure. Again, some days ago, we embodied in a memo- randum which was communicated to you personally by his Excellency Liu-formerly junior councillor of this board and now newly appointed Chinese Minister to Great Britain-a proposal that the duty and li-kin on foreign and native opium respectively should both be calculated at 30 per cent. ad valorem on the present price of the drug and stated that should this proposal obtain the consent of His Majesty's Government it would be quite easy to discuss the new opium regulations in Kuangtung province which are now in force.

I sincerely and gratefully appreciate the two offers contained in your note under acknowledgment; the first that His Majesty's Government are prepared to consider and discuss any proposal put forward by my Government if they are dissatisfied with the existing arrangements for controlling the importation of foreign opium, and the second that Iis Majesty's Government will not insist on the production of proof on the part of my Goverшunent that China has fulfilled her share of the bargain concluded three

years ago.

I have the honour to observe that the existing arrangements in regard to the importation of foreign opium are not altogether satisfactory in one particular. This particular is in connection with the 16,000 chests of Indian opium which are exported to destinations other than China. This opium may either be conveyed to China from places other than India or its destination may be changed to China while still in transit to other countries. There is now no system of checking these abuses.

Further, I have the honour to state that, as regards the procedure to be adopted to secure a renewal of the arrangement concluded between our Governments three years ago, his Excellency Liu will proceed to negotiate a satisfactory arrangement with your Excellency.

I avail, &c.

Prince CHING.

I have, &c.

W. G. MAX MÜLLER.

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