[This Document is the Property of His Britannic Majesty's Government.]
SOUTH-WEST CHINA.
CONFIDENTIAL.
[18671]
Sir,
the
Grey,
No. 1.
[May 31]
RECEIVED 22642 SECTION 23 JUN 06
India Office to Foreign Office.--(Received May 31.)
India Office, May 30, 1906.
WITH reference to 25th December, 1905,
ment's reply.
435
the correspondence ending with Mr. F. A. Campbell's letter of on the subject of the removal of the existing prohibition against the passage of Yunnan opium through Burmah in bond, I am directed by the Secretary of State for India in Council to forward, for the information of Sir Edward a copy of the despatch addressed to the Government of India and of that Government's reply.
to inquire whether Sir Edward Grey sees any objection to the correspondence being communicated to His Majesty's Minister at Peking, and to the Minister being again consulted on the subject.
I am, &c.
(Signed) A. GODLEY.
Inclosure 1 in No. 1.
Mr. Morley to Government of India.
India Office, January 26, 1906.
My Lord,
I HAVE received the despatch from your predecessor's Government, dated the 12th October, 1905, in which it is stated that the Government of India entirely agree with Sir E. Satow that it is not desirable to approach the Chinese Government regarding the removal of the existing prohibition against the passage of Yunnan opium through Burmah to China in bond. It is added that it is the view of Lord Curzon's Government that the scheme proposed with this object should be definitely abandoned.
I feel some hesitation in subscribing to this opinion without further discussion of a proposal which has been urged on the grounds of its important commercial and political advantages. I have been somewhat impressed by the arguments in favour of the scheme which have been put forward by the Government of Burmah and by Mr. Consul Litton, some of which received the support of the Government of India in their despatch dated the 5th January, 1905; and if it is admitted that there can be no large increase in the trade between Burmah and Yunnan unless a passage is given through Burmah to Yunnan's chief article of export, it seems to me that it would be a matter for regret if we were hastily to abandon further action without at least some effort to ascertain the views of the Chinese Government on the subject.
I observe that the only new argument put forward by Sir E. Satow in his telegram dated the 13th May, 1905, is that it will scarcely be possible to persuade the Chinese Government to accept the scheme without the use of pressure. I entirely concur with your predecessor's Government that no pressure should be employed to obtain the Chinese Government's consent. But the circumstances have so far changed since Sir E. Satow's telegram was sent that it has been reported by Mr. Litton that the Chinese merchants interested in the trade have themselves petitioned the Peking Government for the removal of the restrictions on the export of opium to Burmah. This fact, it seems to me, affords an opportunity for sounding the Chinese Government on the matter. It would be possible, for example, to let the Chinese Government know of this Petition, and to hint that, so far as the transit of opium is concerned, the British Government might not be unwilling to waive the concession in the interests of their trade if the Chinese Government attach importance to it.
I shall be glad to be informed whether, on reconsideration, your Excellency's Government would have any objection to instructions in this sense being given to Sir E. Satow.
I would observe that this matter derives additional importance from the fact that a proposal is now under consideration for the construction of a light railway from ...
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