CO129-383 - Public Offices - 1911 — Page 248

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CONFIDENTIAL.

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14697

REGR

*35 € MAY

Sir J. Jordan to Sir Edward Grey,-(Received April 25, 5 P.M.)

(No. 104.) R.

Peking, April 25, 1911, 225 P.M. YOUR telegram No. 72 [of 21st April: Opium negotiations]. Following is text of proposed arrangements regarding stocks and other uncertificated opium :-

"On date of signature of agreement a list shall be taken by commissioners of customs, acting in concert with colonial and consular officials, of all uncertificated Indian opium in bond at treaty ports, and of all uncertificated opium in stock in Hong Kong which is bona fide intended for Chinese market, and all such opium shall be marked with labels, and on [? payment of] 110 Peking taels consolidated import duty shall be entitled to the same treaty rights and privileges in China as certificated opium. Opium so marked and in stock in Hong Kong must be exported to a Chinese port within seven days of signature of agreement.

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All other uncertificated Indian opium shall, for a period of two months from date of signature of agreement, be landed at ports of Canton and Shanghai only, and at the expiration of this period all treaty ports shall be closed to uncertificated opinum provided that Chinese Government has obtained consent of other treaty Powers.

"Imperial Maritime Customs shall keep a return of all uncertificated Indian opium landed at Shanghai and Canton during this period of two months other than opium marked and labelled as provided in paragraph 1, and such opium shall pay new rate of import duty, and shall not be re-exported in bond to other treaty ports.

"In addition to annual reduction of 51,000 chests already agreed upon, British Government agree further to reduce import of Indian opium during each of years 1911, 1912, 1913, 1914, by an amount equal to one-fourth of the total ascertained amount of uncertificated opium in bond in Chinese treaty ports and in stock in Hong Kong on date of signature, plus one-fourth of amount of uncertificated Indian opium landed during ensuing two months at Shanghai and Canton."

Above has been submitted confidentially to Inspector-General of Customs, who considers it quite workable. If it is accepted as it stands, China will agree to following stipulations for prohibition by ports and provinces :----

"His Majesty's Government agree that Indian opium shall not be conveyed into any province in China which can establish by clear evidence that it has effectively suppressed cultivation and import of native opium. It is understood, however, that closing of ports of Canton and Shanghai to import of Indian opium shall not take effect except as final step on the part of Chinese Government for completion of above

measures.

Consolidated duty is fixed at 350 taels a-chest, and is to take effect as soon as Chinese Government levy an equivalent excise duty on native opium. Following article contains terms of relief that will be granted to opium trade; but no intimation should be given to merchants until Chinese consent :-----

"On confirmation [ of this] agreement, and beginning with collection of new rate of import duty, China will at once cause to be withdrawn all restrictions placed by provincial authorities on wholesale trade in Indian opium, such as those recently imposed at Canton and elsewhere, and also all taxation on wholesale trade other than consolidated import duty, and no such restrictions or taxation shall be again imposed so long as additional article to Chefoo Agreement remains as at present in force."

Above terms of settlement may be regarded as representing very utmost China is prepared to concede, and as stocks have now risen to 21,000 chests, and there is great popular opposition to any agreement, prompt action is most desirable.

(Repeated to India.)

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