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to their notice the following information which he has received from reliable
sources:-
1. Kuangsi.
Owing to the unsuitability of the soil and climate of the greater part of the province for the cultivation of the poppy, its growth has always been restricted to the northern districts bordering on Kweichow and Hunan, and the quantity of opium produced has not more than sufficed for local consumption. Enormous quantities of opium, however, estimated at nearly 1,000,000 taels a year, pass through Wuchow, of which but an insignificant proportion is discovered and seized by the maritime customs.
Of this opium about three-tenths is said to originate in Yunnan, the remaining seven-tenths in Kweichow. Less than half of the Kweichow drug comes down to Wuchow via Liuchow, the main centre of the trade being Poseh. Agents of the opium merchants purchase the opium at the place of production, making, if necessary, arrangements with the Kweichow or Yunnan military authorities to convoy it to the frontier, where the escort duty is taken over by the Kuangsi troops. From Poseh the drug is transported to Nanning either on one of the regular passenger motor-boats or else under charge of an escort of troops by land or junk. At Nanning the vigilance of the maritime customs is eluded by making a circuit of the settlement, and at night at some quiet spot lower down, the opium is shipped on to one of the regular Wuchow-Nanning motor-boats. At Wuchow either the opium is too safely hidden for the customs to discover or else it is dropped into sampans above the harbour. It is then taken to one of the three following yamens-Defence Commissioner, Colonel of the Garrison, or Water Police Station--for safe keeping, pending its shipment to Canton. From Wuchow the opium is shipped to Canton on one of the small river gunboats constantly running between these two ports. There gunboats are under the jurisdiction of the River Protection Department of the Kwangtung Provincial Government, and it is at that yamen in Canton that the opium is stored pending its reshipment. Of course, some opium is smuggled through without military escort and its consequent expenses, but in the main the opium trade is under the protection of the military authorities, it being presumably found cheaper to pay for military escort than to run the risk of confiscation,
A year ago the price of opium was 5 dollars per tael at Poseb, 8 dollars per tael at Wuchow; but the prices at present are about 2-50 dollars and 3.50 dollars per tael respectively. This great fall of price at Poseh must undoubtedly be due to the absence of risk in its cultivation in Kweichow and Yunnan, while the reduction in the difference of price between Poseh and Wuchow would appear to be due to a reduction in the risk of loss during transport in Kuangsi. The amount paid for military protoction during transport through Kuangsi is said to average 50 cents per tael. This sum is all pocketed by the Defence Commissioner and other military officers and men stationed at places through which the opium passes. With the exception of the likin authorities, who undoubtedly extort blackmail whenever they discover shipments of opium, none of the civil officials get any share of the profit, and many of them would undoubtedly take strong steps to put a stop to it, but dare not oppose the military.
II. Szechuan.
His Majesty's consul-general at Chengtu has received a letter addressed to him by twenty residents, natives of the district of Hsi Chang, the headquarters of which is the city of Chien-ch'ang, enclosing photographic evidence that the cultivation of the poppy was carried on there under the compulsion of a military official, by name Kuo-ch'ang-ming, who contrived to establish himself in command of the Chinese forces at Chien-ch'ang, and that any persons daring to disobey the order to plant were subjected to heavy fines. In further proof the writers forwarded copies of the orders issued for the collection of the opium tax. Copies of these orders and of the photographic evidence above referred to are annexed to this memorandum.
III.-Ichung.
On the 1st June, His Majesty's consul at Ichang found 56 catties of opium concealed in the backquarters of the burnt offices of His Majesty's consulate. Twenty-five catties were also found by the Rev. T. R. Kearney in the servants' quarters of his house on the 9th June. The opium was handed to the customs and
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destroyed by fire. Since that date His Majesty's consul has been continually pressing the local authorities to investigate these cases properly with a view to adequately punishing the guilty parties and to take steps to prevent their recurrence: but in spite of his insistence, up to the present time the local authorities have taken no serious measures. His Majesty's consul adds that his experience with the local authorities is that where opium is concerned they are acting as if the prohibition against the drug had been cancelled by the Central Government and trade in it were now legal. He states the customs also get no satisfaction in regard to the offenders they send in to the authorities to be dealt with.
His Majesty's Legation will not fail to keep the Wai-chiao Pu informed of any further particulars that may reach them in regard to the traffic in other provinces.
October 29, 1919.
Enclosure 2 in No. 40.
Extracts from printed Chinese Pamphlet.
Copy of Rules made by Commandant Kuo for the Collection of Opium Tas.
(Translation.)
TAX is to be levied on cultivated land at the rate of 80 dollars per shih. For more or less land cultivated, the amount of tax is to be calculated accordingly.
Deputies on inspection must make investigations direct from the heads of every ten families, in order to ascertain accurately the area of land cultivated and the amount of tax due; they must personally examine the lands in conjunction with the local headmen and submit joint lists and reports.
Lists must state clearly the names of regions, localities and cultivators; the area of land cultivated and the amount of tax due should be stated underneath.
When the tax is collected, taxpayers should make payment to the inspector
in the presence of the local headman, a seal bearing the inscription "Received in full being then impressed on the list and shown to the taxpayer as evidence of payment.
With a view to avoid malpractices, the taxpayer should also sign the
list against the amount of the tax paid by him.
After thorough investigations have been instituted, the taxpayer should make full payment of the tax in accordance with his undertaking within a period of fifteen days.
In the event of the taxpayer being unable to pay the whole amount of his tax at once, the inspector may give various time-limits for payment, but this liability must be guaranteed by the local headman.
The inspector will submit an advance report with a list of the number and names of taxpayers.
The inspector will draw a salary of 16 dollars per month, with an extra allowance of 1 dollar when travelling on duty and a subsistence allowance of 50 cents when halting.
When investigating into the number of now of land, the inspector must be scrupulously accurate; he must not indulge in malpractices with his colleagues or the local headman such as reducing the amounts reported or suppressing names and embezzling funds. Appropriate penalties will be inflicted for any such offences, on detection.
The inspecting deputy should remit the money once in every three days, and submit for inspection a report with a list of names in every ten days.
Copy of Instructions issued through the Hsi-Ch'ung District Magistrate urging the Collection of Opium Tax.
Instruction No. 352 issued by the Office of the Hsi-Chang District Magis-
trate:-
To Chou Yü tsun, Head of the Pao-An Trainband.
On receipt of an earlier letter from the Commandant's headquarters stating that the "acre-tax in this district was still heavily in arrears and requesting me
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