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Even were the official sales establishments conducted on proper lines, that is to say without imposing any illegal taxation on Indian opium, they would still be objectionable and the import of opium would still be restricted thereby, as no opium may be sold at these establishments other than that which was declared as in stock at the time these establishments were opened. Consequently, all opium imported after that date be
inay sold neither at these establishments nor at the opium shops, except perhaps in unbroken packages-- a much larger quantity than the ordinary consumer desires or is indeed licensed to buy at one time. But in view of the seizures mentioned in my letters to the tutu of the 6th and 19th instants, it is clear that even unbroken packages bearing customs certificates are no longer immune,
The Wai-chiao Pu in their memorandum omit all reference to the other features of the regulations to which exception has been taken. You will observe from the two tax receipts which I enclose that further taxation is being levied on foreign opium at this port in addition to the consolidated duty,
I have not yet received a reply from the tutu to my letters of the 6th and 8th instants, though I have pressed him repeatedly for an answer. I can but assume that he is unable to refute the assertion that the regulations are in conflict with the provisions of the additional article of the Chefoo agreement and of the opium agreement of 1911. By adopting an attitude of blank indifference to all protesis and expostulations, having gathered from foreign journals that it is highly improbable that the British Government would ever take active steps to uphold their treaty rights, he doubtless hopes to prolong the discussion until such time as he can truthfully say that he has fulfilled the requirements of the opium agreement (article 3) as regards native opium, when he will look to His Majesty's Government to accord Kiangsi complete freedom from Indian opium, ignoring the loss of trade to the foreign opium merchants, amouuting in the gross to some 200,000 to 300,000 taels per month.
I venture to suggest that the simplest solution would be for the tutu to issue instructions to the Kiangsi officials that the regulations are to be confined solely to native opium, and that Indian opium may he imported and sold as freely as heretofore.
From what I learn, it is apparent that native opium is being dealt with no less severely than Indian opium, and that the regulations are being rigorously administered throughout the province. On the other hand, the smuggling of opium of all descriptions into Kiangsi has increased manifold.
I have, &c.
Enclosure 2 in No. 1.
LANCELOT GILES.
Sir,
3
Enclosure 3 in No. 1.
Acting Consul Giles to Li Tutu, Nanchang,
Kiukiang, August 8, 1912. WITH reference to the new anti-opium regulations, I have the honour to make the following observations :---
In your letter of the 16th July you state that these regulations are in conformity "The foregoing with paragraph 4 of article 7 of the opium agreement, which says, stipulations shall not derogate in any manner from the force of the laws already published or hereafter to be published." You have, however, overlooked the fact that the laws referred to in this paragraph are such as may be published by the Chinese Government, whereas the regulations have only been published by the provincial government of Kiangsi, and have never received the sanction of the Central Govern- ment; as a matter of fact, I understand that the Central Government has instructed you to withdraw these regulations, as they violate the treaties between our respective
countries.
By the additional article to the Chefoo agreement, Indian opium may be con- veyed under customs transit certificates to any place in the interior of China for sale. But the regulations state that opium may only be sold at fixed establishments. This is a violation of the treaty, as it restricts the import into the interior of Indian opium.
By regulation 19 a tax is levied of one-sixth of the price for which opium is sold. Article 7 of the opium agreement says, "Indian raw opium, having paid the consolidated import duty, shall be exempt from any further taxation whatsoever in the port of import." But I learn that this tax is being levied in Kiukiang on Indian opium, which is another breach of treaty on the part of the local authorities.
I must once more point out to you that, in accordance with article 3 of the agree- ment, the import and conveyance of Indian opium into the province of Kiangsi will continue as a legitimate trade until this province can establish by clear evidence that it has effectively suppressed the cultivation and import of native opium.
Meanwhile, I have the honour to ask you to issue instructions to the officials concerned that the anti-opium regulations are not to affect in any way the import, conveyance, or sale of Indian opium in the province of Kiangsi, and thus conform with the treaties drawn up between Great Britain and China.
I should be obliged if you would favour me with a reply.
I have, &c.
LANCELOT GILES.
1
1
Sir,
Acting Consul Giles to Li Tutu, Nanchang,
Kiukiang, August 6, 1912.
I HAVE the honour to inform you that I am in receipt of the following complaint, from Messrs, David Sassoon and Co (Limited).
On the 2nd June the anti-opium bureau of the Ting-nan district seized a ship- ment of twenty-five packages of Malwa opium, bearing customs certificates, which the Yüch Yü opium firm had imported from Swatow. The dealer in question was arrested and 540 dollars were taken from him. The bureau trumped up a charge that this opium had been smuggled into Kiangsi; and the opium was accordingly confiscated and the merchant was fined 1,000 dollars.
With regard to this matter, I would point out that, as the opium bore customs certificates, the charge of smuggling must fall to the ground, and that the action of the bureau was an infringement of treaty rights.
I have, therefore, to ask you to instruct the bureau to release the opium, return the 1,540 dollars to the dealer, and restore to the latter bis freedom, so that au innocent man should not suffer punishment.
I have, &c.
LANCELOT GILES.
Sir,
Enclosure 4 in No. 1.
Acting Consul Giles to Li Tutu, Nanchang.
Kiukiang, August 19, 1912. I HAVE the honour to inform you that I am in receipt of the following complaint from Messrs. Sassoon and Co. :---
On the 11th August Yen Hui-tê, of the Shêng Sheng Ho opium establishment in Nanchang, was arrested, and twelve unbroken packages of Indian opium, bearing customs certificates, found in his possession were confiscated.
Messrs. Sassoon and Co. have also furnished me with two receipts, issued at the yamên of the prefect of Kiukiang, for payments made on account of foreign opium at this port.
You have repeatedly informed me that the new anti-opium regulations only concerned native opium, but it is clear that your subordinates are extending their
scope
to foreign opium as well. The seizure of the twelve packages of Indian opium bearing customs labels is a violation of the additional article of the Chefoo agreement, and must ask you to order the immediate release of Yen Hui-te and the restitution of the twelve packages of Indian opium.
I have already pointed out to you that taxation of foreign opium in the port of import is a breach of article 7, paragraph 2, of the opium agresinent; and I must ask
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