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Governor, as the enclosed copy of a letter from him to me shows, was sympathetic but pointed out that it would be necessary to include the Frenca Colony of Kwongchauwan in any concerted arrange- -ment.
It so happened that M. Famefir the Administrat- -or of that Colony arrived here shortly afterwards to study various points in the administration, particularly regarding the collection of Land Revenue, in this Colony, and I was able to discuss the matter briefly with him. I learned that a Monopoly in the sale of salt had until recently been farmed out in Kwongchau- -won; that the monopoly had been abolished because the Farmer inposed such heavy taxes that he killed the native industry of the amufacture of salt; that the Colonial Government intended so scon as this industry had revived to institute a control of salt under which salt for local consumption would undoubtedly be taxed. I gathered, however, that salt for export would not be taxed. Such an arrangement would of course not fit in with the proposels which I wished to submit and I have therefore had to abandon them and to
submit the following for your consideration:-
4.
The method of control sugested in the
Customs Convention, copy of the pertinent Article is attached for convenience of reference, is open to the serious objections:-
(a). from the point of view of this Government that it
would entail the considerable expenditure of not less than $25,000
a year as shewn in Mr. Hutchison's report: and
(b). from the point of view of China that it would not
be effective.
I have therefore to recommend the following
system to be super-imposed upon that set out in the Customs Con-
-vention the provisions of which are satisfactory as far as they
60:-
(a). The imposition of a tax of $2.50 per pioul on all
salt issued from the Government Warehouses for local consumption.
(b). The payment to the Chinese Karitime Customs of a
tax at the same rate, for the credit of the Chinose Salt
Administration
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