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

CHINA TRADE.

CONFIDENTIAL.

C. O.

18941

RECE [April 24.] R. 26 MAY 08.

SECTION 1.

[13981]

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received April 24.)

(No. 152.) Sir,

Peking, March 31, 1908. WITH reference to my despatch No. 107 of the 3rd instant, I have the honour to inclose translation of the reply which I have received from the Wai-wu Pu explaining the steps which are to be put in force in China for restricting the importation of Turkish and Persian opium, and which appear to be both fair and practical.

In regard to other sorts of opium, it is stated that, as the amount imported is so small, and is also exported, the matter seems scarcely worth considering,

I have forwarded a copy of this despatch to the Governments of India and Hong Kong,

I have, &c.

(For His Majesty's Minister),

(Signed) STEPHEN LEECH.

Inclosure in No. 1.

Prince Ching to Sir J. Jordan.

(Translation.) Sir,

Peking, March 26, 1908.

ON receipt of your Excellency's note inquiring as to the restrictions to be imposed on the import of Turkish and Persian opium, the Board requested the Revenue Council to deal with the matter without delay, and informed your Excellency accordingly.

The Revenue Council have now communicated to me the following report, submitted, under instructions from them, by the Inspector-General of Customs :----

"Persian opium is transhipped at Bombay for Hong Kong by the two British firms, David Sassoon and Co. and E. D. Sassoon and Co., the total quantity in 1903 being 6,800 piculs; in 1904, 5,104 piculs; in 1905, 2,901 piculs; in 1906, 3,542 piculs; and in 1907, 2,247 piculs. Some of this opium is prepared at Hong Kong, and some shipped to Macao, Kuangchowan, and foreign ports. The following are the quantities shipped to China in recent years: in 1903, 3,929 piculs; in 1904, 3,095 piculs; in 1905, 1,690 piculs; in 1906, 795 piculs; and in 1907, 1,468 piculs. From these figures it will be seen that a great reduction in the import has already taken place within the last few years.

"All the Persian opium imported into China for sale is shipped from Hong Kong, most of it going to Foochow and Amoy, and the remainder—a small amount—to the ports of Kuangtung. Since the sixth year of Kuanghsu (1880-1) the Americans have not engaged in the opium trade, and the import into China is in the hands of British and Chinese firms, in addition to a Persian firm, Messrs. Afshar and Co., of Shanghae.

"As the places of origin of Turkish and Persian opium are near each other, the former is entered in the Customs Returns under the same heading as Persian opium, and no differentiation is made.

"In accordance with the instructions which I have received to devise means for restricting the import, I now propose that measures similar to those adopted by the British Government to limit the export of foreign opium from India should be taken in China to limit the import of Turkish and Persian opium. By striking an average between the quantities of Persian and Turkish opium imported during the years 1906 and 1907 the mean annual import may be fixed at 1,125 piculs. I would suggest that no attempt should be made to reduce the import below this figure for the present year, but that, commencing with the year 1909, the following scheme should be put in operation :----

"1. From the 1st January, 1909, any merchant wishing to import into any open port in China any Persian or Turkish opium must apply to the Commissioner of Customs at Kowloon for a special permit, one for each chest of opium. This permit shall state that the opium may be shipped to any open port in China, and that on its arrival


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