CO129-373 - Public Offices - 1910 — Page 91

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

OPIUM.

CONFIDENTIAL.

[30090]

No. 1.

[August 18.]

SECTION 3.

C

20643

RECR

90

(No. 259.) Sir,

Mr. Max Müller to Sir Edward Grey.--(Received August 18.) Prof 16 SEP 10)

Peking, August 2, 1910.

I HAVE the honour to enclose herewith copy of the note which I have addressed to the Wai-wu Pu, in accordance with the instructions contained in your telegram No. 111 of the 30th July, protesting against the additional taxation of opium under the Kuangtung regulations, and pointing out that, if the Chinese Government are dissatisfied with the present arrangements for controlling the importation of foreign opium, the matter is one for friendly negotiation, but that it is not open to them to adopt measures contrary to existing treaty stipulations without previous reference to His Majesty's Government.

In conclusion, I have informed the Wai-wu Pu that if they will act in conformity with the wishes of His Majesty's Government in this matter, the latter are prepared to consider an increase in the consolidated import duty at present leviable under the additional article to the Chefoo convention.

I have, &c. (In the absence of His Majesty's chargé d'affaires),

ERNÉST SCOTT.

Enclosure in No. 1.

Your Highness,

Mr. Max Müller to Prince Ching.

Peking, August 1, 1910. AS your Highness is doubtless aware, during the past two months I have made repeated protests at the Wai-wu Pu against the enforcement of the new regulations for the taxation of opium in Canton. His Majesty's consul-general has made similar protests to the Viceroy at Canton, but I regret to have to state that hitherto our protests have had no practical effect.

His Majesty's Government have carefully considered the new regulations which I forwarded to them, and have now instructed me to address to your Highness's Government a protest against the additional tax of 30 cents on every tael of prepared opium. His Majesty's Government hold that the payment of the dues prescribed in the additional article to the Chefoo convention free foreign opium from the payment of any further levies within the limits of a treaty port, and the levy of this additional tax, even though payable on prepared opium, is a clear infringement of the above agreement. This is the interpretation that has always been placed upon the provisions of the additional article in the past and to that interpretation as set forth in Sir John Jordan's note of the 2nd January, 1909, His Majesty's Government adhere. I am, therefore, to urge your Highness to issue instructions without delay for the withdrawal of article 6 of the new regulations, at any rate so far as it applies to sales of prepared opium in a treaty port.

Further, in the opinion of His Majesty's Government, articles 4 and 7 of the regulations appear to be devised with the intention of defeating the stipulation of the additional article, according to which no local tax cau be levied on foreign opium, even in the interior, so long as the opium is in unbroken packages and under seal. His Majesty's Government, therefore, consider that articles 4 and 7 are likely to interfere unduly with the wholesale trade in foreign opium, and should therefore be modified as infringing the additional article of the Chefoo convention,

At the same time I am directed to point out to your Highness that, if the Chinese Government do not consider the existing arrangements for controlling the importation of foreign opium as satisfactory, the matter is one for friendly negotiation with His Majesty's Government, who are prepared to consider and discuss the question in a

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