[This Document is the Property of His Britannic Majesty's Government.] 160

CHINA TRADE.

[July 22]

CONFIDENTIAL.

SECTION 1.

C.O.

[25439]

No. 1.

28370

Sir J. Jordan to Sir Edward Grey.--(Received July 22.)

(No. 285.) Sir,

4 AUG 08 Peking, June 24, 1908

WITH reference to my despatch No. 555 of the 27th November, 1907, I have the honour to transmit to you herewith a second General Report on the opium question by Mr. Leech, Councillor to His Majesty's Legation.

Mr. Leech has devoted much care and attention to the preparation of this Report, and the conclusions at which he has arrived may be accepted as an earnest attempt to form an impartial estimate of the situation after an exhaustive examination of all the evidence available.

I have, &c.

(Signed) J. N. JORDAN.

Inclosure in No. 1.

Second General Report by Mr. Leech on the Opium Question.

SINCE the end of November last, when the previous General Report on the anti-opium movement was written, the two most noticeable features have been the continued interest and energy shown by the Central Government in the question as compared with the growing apathy evinced by the provincial officials and their lack of sustained effort to eradicate the evil.

In contrast to this there is the gratifying evidence from many provinces of the reduction of the area under poppy cultivation. This reduction, which varies greatly according to local conditions, seems to be as much a voluntary step on the part of the farmers, prompted by self-interest and fear, as the result of official exhortation or of a desire to obey the authorities.

The poppy is easily distinguishable, especially when in flower, and the dread of increased taxation, fines, punishment, or destruction of the crop seem to have been powerful motives in bringing about this reduction, which, though slight in actual amount, is fairly general throughout the Empire; though it is only fair to admit that in some instances the personal energy and determination of the local authorities have been the direct causes.

No proposals for compensation are contemplated to those who are called upon to abandon a hitherto legitimate and lucrative form of agriculture, chiefly carried on in remote districts, where the farmers will no doubt experience considerable difficulty in finding other remunerative crops owing to the expense of transport.

This hardship will be lessened by the gradual operation of the Decree which gives ten years as the limit for total cessation of cultivation, but it may reasonably be anticipated that discontent may show itself in some form or other, and it is doubtful if the energetic Viceroy of Yunnan was acting prudently in reducing the time limit of total cessation of poppy cultivation from ten to three years.

The energy and interest of the Central Government is manifested in several new Decrees. That of the 22nd March, 1908, in response to a Memorial presented by the Wai-wu Pu (Appendix (A)), drew attention to the evils inseparable from the use of opium, and emphasized the sympathetic help which China had received from His Majesty's Government in her efforts to suppress the opium habit.

The Boards of Finance and of the Interior were instructed to prepare supervisory Regulations for the approval of the Throne, together with strict measures for their enforcement, and a strict investigation was to be made in regard to the steps taken by the provincial authorities to obey the earlier Decrees.

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