[This Document is the Property of His Britannic Majesty's Government,
CHINA TRADE.
CONFIDENTIAL.
[34670]
(No. 423.) Sir,
No. 1.
440
[October 21.]
SECTION 3.
Sir J. Jordan to Sir Edward Grey.--(Received October 21.)
Peking, September 4, 1907.
IN continuation of my despatch No. 401 of the 20th ultimo, I have the honour to report the further representations which I have made to the Wai-wu Pu against the proposed establishment of a Government opium monopoly.
At an interview on the 27th August the Ministers informed me that, on the receipt of my note of the 19th August, they had telegraphed to Nanking, Szechuan, Hupei, and Kiangsi for reports on the subject. Szechuan alone had replied. There was a monopoly scheme in process of inauguration in that province affecting only prepared opium, but having no concern with the raw article.
1 pointed out to the Board that the Nanking project restricted the sales of raw opium to the Government Bureau, and involved a distinct breach of Treaty stipulations against monopolies and freedom of trade.
The Grand Secretary Na Tung, while stating that the Board had little or no information on the subject, added that they were prepared to instruct the provinces to suspend independent action, and await an adjustment of views between the Central Government and His Majesty's Government. As soon as the replies came in from the provinces, and the counter-proposals of His Majesty's Government on the general question had been considered, the Wai-wu Pu would furnish me with a reply to my note in writing.
Wang Ta-jên observed that while he was Minister in England he was constantly approached by persons who suggested to him the establishment of a Government monopoly as the only means of controlling the consumption of the drug.
I said that irresponsible advice of this kind was frequently given both in England and China, but that Governments had to be guided by Treaty stipulations, and that provincial authorities could not be allowed to formulate a policy in such matters.
The question was again discussed at an interview yesterday afternoon, the Ministers present being their Excellencies Lü and Wang. The former, who seemed to be unaware of what had passed on the previous occasion, appeared to regard a monopoly as an indispensable measure in giving effect to the prohibition.
It was explained to him that, pending the negotiation of an understanding on the whole question between the two Governments, it was quite inadmissible for the provinces to take upon themselves the adoption of measures which involved an infringement of Treaty provisions. The importers of opium at Shanghae had complained to His Majesty's Government of the unjustifiable restraints which the establishment of the monopoly at Nanking would impose upon their trade, and I was acting under instruc- tions in pressing the matter upon the attention of the Central Government. If the Central Government carried out their part of the understanding, the trade in Indian opium would automatically disappear in ten years, and I did not see how a monopoly, which was no part of their original programme, could facilitate the attainment of the end which both Governments had in view.
After some further discussion Lü Ta-jên eventually promised that a telegram would be sent to the Viceroy at Nanking ordering the suspension of the measure pending further inquiry.
I have, &c. (Signed) J. N. JORDAN,
[2077 x-3]