[This Document is the Property of His Britannic Majesty's Government.]

[A]

# AFFAIRS OF CHINA.

**CONFIDENTIAL.**

770

[October 17.]

## SECTION 1. C O

39431

IREC

IP 26 007 06

[35165]

No. 1.

Sir Edward Grey to Sir M. Durand, (No. 221a.) Sir,

THE American Ambassador told me to-day that his Government are much concerned with regard to the question of opium, which has been raised in connection with the Philippines, and he was instructed to ask me what view we should take of a Joint Commission on or a Joint Investigation of the Opium Trade and the Opium Habit in the Far East, to be undertaken by the United States, Great Britain, France, the Netherlands, Germany, China, and Japan. The American Government desired to have our view and that of the Japanese before making any general overture to the other countries. A similar inquiry was therefore being addressed simultaneously to Japan, and he would be glad to have an answer from us as soon as possible.

I asked exactly what was meant by an investigation of the opium trade and opium habit.

The American Ambassador informed me that it was desired to come to a decision as to whether the consequences of the opium trade and opium habit were not such that civilized Powers should do what they could to put a stop to them.

I said that I must consult the India Office before I could give any answer on the question of such an investigation. But I might tell him at once that, though an interference with the import of opium into China would involve a great sacrifice of Indian revenue, that would not prevent the British Government from considering the question or incurring some sacrifice if it was clearly proved that the result would be to diminish the opium habit. The Chinese were understood to contemplate measures for stopping or restricting the consumption of opium in China, and if that were really to be done it would be a thing which we should encourage. If, on the other hand, China was simply to prevent the importation of foreign opium in order that individual Chinese might grow more opium themselves and realize a higher price for it in China, that would be a fraud, in connection with which it would be useless for us to make sacrifices. I would, however, consult the India Office, and let him know as soon as possible our view on the proposed investigation.

I am, &c. (Signed) EDWARD GREY.

[2183 r—1]

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