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Chinese would undertake that all drug should from the coming in to the agreement be absolutely free from all further duty and Elkin, and agree that in the event of a departure from this condition, the Lucian Government would be released from their part; the arrangement, how to deal with opium in Penang and Singapore, would, of course, require consideration, and also the conditions upon which the delivery of opium for the requirements of Penang and Singapore would be regulated, but the difficulties in connection with supplies for these ports are probably not insuperable. The question is, would the Govt of India be inclined to come to some such arrangement with China on some such basis as sketched.
If so, China would send a special Commissioner with power to come to an understanding with the Indian Government in the matter.
In the meantime, I was asked to ascertain privately and confidentially whether there was any likelihood of some such agreement as indicated being favourably viewed, and I promised to privately sound the right department when I got the matter before me to do so. I do not know whether in addressing you I am addressing the right department, but I think I am. If not, will you kindly make the letter over to the proper department and excuse me?
I will be glad to receive a reply as early as convenient.
Treasury