August 29, 1923

We often say that the Chinese government is merely a bookkeeping office for foreign powers; some may not believe it. We also frequently point out that the so-called “friendliness” of foreigners—especially the British and Americans—is nothing more than a pretext to exploit the very lifeblood of the Chinese people under the banner of “goodwill”; yet even this assertion finds skeptics. Since the ban on cotton exports was overturned in response to objections from the foreign powers, one can hardly remain entirely unconvinced. And now, with those same powers pressing the government to abolish the cigarette tax in Zhejiang and other provinces, there is even less room for doubt. According to a dispatch from Beijing carried by The Shen Bao on August 28: “At the cabinet meeting, the British and American ministers protested against the imposition of additional local taxes on cigarettes, resulting in an urgent telegram ordering the relevant provinces to cease collection.”

Just what is this matter of levying a cigarette tax? Let us examine a cable sent on June 31 by the Hangzhou General Chamber of Commerce to the Beijing government:


“Indeed, taxation of luxuries is a common practice throughout the world. In recent years, cigarettes have become extremely popular. Taking Zhejiang as an example, annual sales have exceeded ten million units, representing an astonishingly large consumption whose pernicious effects are no less severe than those of opium. Recognizing this danger, the authorities have specially established a bureau to collect a tax on cigarettes, thereby converting this wasteful expenditure into funds for road construction. However, we have learned that foreign merchants, invoking treaty rights, have repeatedly intervened with the government. Yet they fail to understand that this special tax is levied solely on consumers and has absolutely no connection with tobacco manufacturers; it is purely a contribution paid by the people of Zhejiang, and foreign firms have no business interfering! Moreover, this pertains to China’s domestic administrative sovereignty, which must not be infringed upon by foreigners. Therefore, we should firmly uphold our rights and refuse to allow any such pretexts to be used. Only then can our sovereignty be truly safeguarded.”


It turns out that, based on the Treaty of Customs Tariffs, Britain and the United States prevent China from freely imposing taxes on imported luxury goods. No matter how “purely a contribution paid by the people of Zhejiang” or how much it concerns “domestic administrative sovereignty,” as long as the item in question is a foreign product, such taxation remains strictly prohibited.

The cigarettes produced by British and American tobacco companies consist partly of imports from Britain, the United States, and Japan, while the bulk are manufactured in China itself—using Chinese tobacco leaves and Chinese labor—at factories set up in Shanghai, Hankou, and other inland cities. Upon leaving the factory, these cigarettes pay only a nominal tax as stipulated by the treaties. Once shipped in large quantities to various provinces, however, China is thereafter barred from exercising its “freedom” to impose further taxes. In Zhejiang alone, the value of cigarettes sold annually exceeds ten million yuan; though the national total remains uncertain, extrapolating from Zhejiang suggests it amounts to at least twenty million yuan—truly a figure that is shocking to contemplate! Fellow countrymen, numbering forty million, let us reflect: why do foreigners pretend to be “friendly” toward us?

As for the Chinese government’s cabinet meetings, they prove remarkably swift and compliant. Whenever the foreign powers make even the slightest move, it is immediately hailed as a “fragrant breeze.” When the foreign powers demand cotton, the cabinet promptly rescinds the export ban; when they seek to flood the market with cigarettes, the cabinet issues an “urgent telegram” instructing all relevant provinces to halt the collection of cigarette taxes. Once again, I ask my fellow citizens: is it accurate to describe the Chinese government as nothing more than a bookkeeping office for foreign interests?




○ The Guide Weekly, Issue 38    The Guide Weekly Publishing House    August 29, 1923




Notes:


 The period at the end of this sentence was added by the editor at his discretion. A review of the original text of The Guide Weekly reveals that this period does not appear, indicating a possible editorial error at the time. Similarly, it is absent in the Collected Works of Mao Zedong, presumably because the editors chose to preserve the original text without alteration. — Editor’s Note