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

CHINA TRADE.

CONFIDENTIAL.

(7481]

No. 1.

C. O. 11982

[March

SECTE 5 APR 07.

Sir,

India Office to Foreign Office.-(Received March 7.)

India Office, March 6, 1907.

I AM directed by the Secretary of State for India in Council to acknowledge the receipt of your letter dated the 14th February, 1907, with regard to the joint investi- gation into the opium trade of the Far East, proposed by the Government of the United States.

In reply I am to say that in Mr. Secretary Morley's opinion procedure by way of Commission would seem better adapted than a Conference for an investigation of the facts of the opium trade, and of the consequences of the opium habit, in the Far East. It is inferred from the despatch of the 17th October, 1996, addressed by Sir Edward Grey to His Majesty's Ambassador at Washington, after his interview with the American Ambassador, that it was the wish of the Government of the United States that the facts should be carefully investigated in the Far East by a Commission, preliminary to any action which may be taken by the Powers jointly or severally. It is conceivable that a Conference, if convened, might find that the materials placed before it were insufficient for arriving at definite recommendations.

If, however, the other Powers consulted prefer procedure by way of a Conference, Mr. Secretary Morley does not desire to press this view.

I am, &c.

[2394 y-1]

(Signed)

ARTHUR GODLEY.

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