CO129-384 - Public Offices - 1911 — Page 58

[This Document is the Property of His Britannic Majesty's Goverment.?

OPIUM.

CONFIDENTIAL.

CO

[June 19.]

23538 SECTION 1.

[23897]

(No. 231.) Sir,

”

1218 JUL II

No. 1.

Sir J. Jordan to Sir Edward Grey,-(Received June 19.)

Peking, May 31, 1911. I have the honour to enclose copies of correspondence with the Wai-wu Pu and the Governor of Hong Kong on the subject of the Opium Agreement.

I do not consider it necessary to trouble you with the copy of Sir F. Lugard's despatch of the 15th May to the Government of India, which merely concerns matters of detail requiring adjustment in connection with the issue of certificates for Malwa opium.

The points to which I venture to draw your attention may be briefly summarised. The opium merchants contend that uncertificated opium in transit on the 8th May, the date of signature of the agreement, between Hong Kong and the treaty ports entitled to admission at the lower rate of duty in common with the same class of opium in transit on that date between one treaty port and another. I regard this contention as not unreasonable, but the number of chests affected being rather large-namely, 341-- the Chinese Government insist on a strict interpretation of the agreement and refuse to regard Hong Kong on the same level as a treaty port for this purpose. My representa- tions have failed to move them, but I have warned the Wai-wu Pu that I shall bear these chests in mind when the moment arrives for determining the rebate in the certified opium exported in 1912, 1913, and 1914 (see final clause of the annex to the agreement).

The fact that over 4,600 chests of certified opium had, through leakage of information, escaped the new rate of duty caused great disappointment to the Wai-wu Pu, and influenced their decision of this question.

The other point refers to the withdrawal of the provincial taxes in return for the increased duty. In this the Chinese authorities have shown themselves more accommodating, and have agreed that the withdrawal shall apply to all foreign opium imported prior to the 8th of May,

I have, &c.

J. N. JORDAN.

Enclosure 1 in No. 1.

Your Highness,

Sir J. Jordan to Prince Ch'ing.

Peking, May 19, 1911. THE 7th article of the Opium Agreement, signed on the 8th instant, provides for the immediate withdrawal of provincial taxation and restrictions on the wholesale trade in Indian opium concurrently with the collection of the new rate of consolidated import duty.

It appears that the Imperial edict confirming this withdrawal as from the 10th instant was duly proclaimed in Canton, but at the same time the provincial treasurer notified the opium farmers that the old provincial tax must continue to be levied on all opium which arrived in Canton before the 8th instant.

As this is not, in my opinion, in keeping with the spirit of the agreement, and is certain to cause confusion, I bave the honour to ask your Highness to issue instructions to the Viceroy at Canton which will ensure the adoption of a uniform mode of procedure for all opium from the date of the agreement.

I avail, &c.

J. N. JORDAN.

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