CO129-434 - Governor Sir May - 1916 [7-8] — Page 649

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Memorandum of Agreement

made the First day of

October One thousand nine hundred and fifteen BETWEEN the Companies firms and persons whose names appear at the end under the heading "The parties hereto of the first part" of the one part and HIS EXCELLENCY TSAI NAI HUANG the Special Envoy appointed by the Government of the Republic of China by Presidential Mandate dated the 30th April 1915 for the prohibition of the sale of native opium in the Provinces of Kiangsu, Kiangse and Kwangtung (hereinafter called the Envoy") of the other part WHEREBY it is agreed as follows :—

1. The parties hereto of the first part shall seli and the Envoy shall purchase 1200 chests of certificated opium of which 806 shall be chests belong- ing to the parties hereto of the first part (as hereinafter defined) or held by them or some of them for sale on account of others as set out opposite the signatures to this Agreement of the parties hereto of the first part and 394 chests shall be chests obtained by the parties hereto of the first part from Shanghai.

2.--All opium sold to the Envoy under this Agreement shall have been certified by the Indian Government for export to China.

All opium purchased under this Agreement shall be sold or disposed of by the Envoy for consumption in Kwangtung and no opium shall be shipped to Kiangsu or Kiangse.

3.-The Envoy shall pay for all opium purchased on delivery in the Hongkong Notes of a British Bank carrying on business in Hongkong at the following prices :—

For Malwa Opium (Old and or New)

Guzerat Malwa

Patna

Benares

11

21

.$9,300 per picul.

9,100 per picul.

9,150 per chest.

8,950 per chest.

4-All payments for opium from Shanghai shall be made in taels and the prices set out in clause three shall be converted into taels at the rate of taels 79 for each $100 Hongkong currency and payment made accordingly and drafts shall be drawn on Hongkong against documents in respect of each shipment from Shanghai and such drafts shall be met by the Envoy at the above rate of exchange. Non-duty paid opium from Shanghai shall be shipped to Hongkong and duty paid opium shall be shipped to Canton.

a. If any chest of Malwa opium or of Patna or Benares opium shati owing to circumstances over which the parties hereto of the first part have no control contain less than the normal quantity of opium whether cakes or balls (as the case may be) delivery shall nevertheless be taken by the Envoy but the price shall be proportionately diminished.

5. The weight allowances given to Chinese purchasers in respect of all Malwa opium as specified in clause 8 of the Agreement between the parties hereto of the first part of the 8th July 1913 shall be allowed to the Envoy in respect of all opium purchased which is Malwa opium but such Malwa opium must be weighed within two months from the 1st October 1915.

6. The Envoy shall take delivery without fail of not less than 30 cheste of all opium purchased under this Agreement during the month of October 1915

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