CO129-373 - Public Offices - 1910 — Page 324

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Enclosure 3 in No. 1.

Mr. Sales to Messrs. D. Sassoon and Co.

Dear Sirs,

Canton, September 5, 1910. WITH reference to the thirteen cases Bengal opium shipped to me by your good- selves, I beg to inform you that I have sold eight cases in small lots, which passed without paying the new tax, but on 29th ultimo my consul left for Swatow, and on 29th and 30th idem, I was in Macao, The monopolists taking advantage of the opportunity seized six balls on 29th ultimo and imprisoned the man; on 30th idem they seized another four balls, and imprisoned the bearer who was my employé.

On 2nd instant, a new French consul came here. On Saturday I called on him and requested him to send a letter to the Viceroy protesting against the seizure of the ten balls and imprisonment of the two men ; at the same time I handed him over a copy of the Chefoo treaty, copy of which I enclose herewith. He promised that he would write a letter to the Viceroy to-day, protesting against the seizure.

You thua see that the monopolists know that they are in the wrong, and that the new tax is illegal, as while my consul and myself were here, the eight cases which I had sold passed without paying any new tax.

Sir,

Enclosure 4 in No. 1.

Yours faithfully,

J. SALES.

Acting Governor Sir F. Mag to Mr. Max Müller.

Colonial Secretary's Office, Hong Kong, September 13, 1910. WITH reference to my despatch of the 6th instant, and previous corre- spondence, I have the honour to forward, for your Excellency's information, in original an extract from the "Wa Tsz Yat Po" of the 12th instant with the translation, which on the 13th instant. I enclose also an extract appeared in the "Hong Kong Daily Press from another Chinese newspaper with translations,* which were handed to this Govern- ment by Messrs. E. D. Sassoon and Co. on the 13th instant.

??

I have, &c.

F. H. MAY, Officer Administering the Government.

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obtained on every chest of raw opium. Over 18,500 chests of raw opium were imported last year.

On this basis a sum of more than 4,400,000 dollars would be obtained; the intention being to gradually increase the tax in each successive term. The same amount of money can therefore be reckoned on, though the number of opium smokers be gradually diminished. This revenue cannot, however, he permanently relied upon, but the amount will be by no means small for the first three years.

4.

"Moreover, if the price of prepared opium is not to be increased the people will not abandon the opium habit. The suggestion of the foreigners that the ordinary duties on opium be increased is a different matter altogether. If the question of increasing the ordinary duties concerns the whole empire, the province of Kwangtung is of course included; but if the ordinary duty is only increased in lieu of the prepared opium tax imposed in the province of Kwangtung, they (the foreigners) will say that a question of raising heavy additional import duty has been imposed. This is only revenue, it has nothing to do with the anti-opium question.

"With regard to the question of raising funds, every chest of opium imported has Though the sun be doubled the only to pay a duty of 110 taels, including li-kin tax. amount collected would still be smaller than the tax imposed on prepared opium. Furthermore, if the proposal to increase the import duty be accepted and a new treaty made, the duty cannot afterwards be increased, whereas a tax on prepared opium can be gradually increased. Therefore it would be a great obstacle to the anti-opium move- ment, for opium smokers would hesitate to abandon the habit. The best plan to stop opium-smoking is to increase the tax on opium. You say this opportunity to increase the import duties on opium should not be missed, but I must point out that we can only tell from the customs returns the quantity of opium imported, and after the opium has been imported one can hardly tell where it is to be sent, and so we would be quite particular locality. The law to ignorant of what quantity of opium is consumed in a stop opium-smoking should be strictly enforced, if there is to be this drawback we shall not get the officials to do their duties in this respect in such a manner as is desired. The tax imposed on prepared opium does not affect the trade of foreign merchants. we at once abandon the tax on prepared opium and enter into a discussion about increasing the customs duty think how much valuable time will be lost. The resolution of opium smokers to give up the use of the drug, too, will be weakened. It is very difficult, therefore, to comply with the British Ministers request to increase the duty on imported opium (instead of putting a tax on prepared opiuni). Please take the question into consideration and make better arrangements."

If

Enclosure 5 in No. 1.

Extract from the "Hong Kong Daily Press" of September 13, 1910.

THE INCREASED TAXATION OF OPIUM: THE ATTITUDE OF THE CANTON VICEROY,

WE understand that with a view to reaching a settlement of the questions raised by the action of the Canton Government in placing a prohibitive tax on prepared opium, and in this way practically putting a sudden end to the import trade in raw opium, and so threatening the importing firms with very heavy loss, the British chargé d'affaires at Peking has suggested a compromise on the basis of an increased customs tax with definite guarantees that there will be no further taxation of the drug in its raw or prepared state.

Following is a translation of a telegram on the question which has been sent to the Wai-wu Pu by the Canton Viceroy ----

"With reference to the licence fee on prepared opium, on every tael of prepared opium 30 cents are to be collected for the first term of three months. In every chest of raw opium there are forty balls, each weighing 48 taels. Assuming that only half of this weight can be secured when turning it into prepared opium-i.e., 24 taels of prepared opium are to be got from every ball of raw opium-over 280 dollars can thereby be

• Not printed.

Enclosure 6 in No. 1.

Petition by the Anti-Opium Bureau to the Viceroy.

THE French merchant, Sales, in the 7th moon, twice imported in Canton five chests of raw opium, and on each occasion the import was not reported to the Kwong Yueh general office. This, not only infringed the prepared licence regulations, but also hinders the suppression of opium. According to treaty rights, no foreign merchant is allowed to import foreign opfum into the interior for sale.

Enclosure 7 in No. 1.

Reply by the Viceroy.

The French merchant, Sales, imported into YOUR petition has been noted. Canton foreign opium without reporting to the prepared licence office, which is against the regulations issued by the Anti-Opium Bureau, but Canton is a treaty port, and according to the Chefoo Convention, foreign merchants are allowed to import and But if foreign merchants have trade in raw opium, and I have no right to stop them.

to licences and import, raw opium into Canton without reporting the quantity and sales, it will be very hard to know where the opium has gone to, and I am afraid more foreigners will follow this example, and it will be a great hindrance to the policy of suppressing opium. I instruct you to suggest some regulations to deal with foreign merchants importing raw opium, that is to say, they should be allowed to sell only to

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