[This Document is the Property of His Britannic Majesty's Government.]
CHINA TRADE.
CONFIDENTIAL.
[7611]
No. 1.
[February 25.]
747
C.O. 11308
SECTION 1 RECO
REGR 1 APR 09
India Office to Foreign Office.~(Received February 25.)
Sir,
India Office, February 24, 1909. I AM directed by the Secretary of State for India in Council to acknowledge the receipt of your letter dated the 10th February, 1909, on the subject of the Regulations made by the provincial authorities of Kiangnan for the control of the sale of opium.
In reply, I am to say that, as the Regulations not only limit the number of wholesale houses but also tie the retail dealers to those houses, the exemption of foreign opium from the clauses which apply to the wholesale trade should be accom- panied by its exemption from the clauses which require retail dealers to obtain their supplies from the licensed wholesale dealers. Probably Sir J. Jordan's note to Prince Ch'ing was meant to include both these exemptions, but it refers only to the first.
I am to add that Viscount Morley hopes that this and other similar questions will be referred by the Chinese Government to the Opium Commission for examination and report. The present position is eminently unsatisfactory. There are constant attempts on the part of the Chinese Provincial Governments to establish systems of opium licences, which, if properly devised and honestly worked, would at once restrict consumption and bring in revenue. These projects are usually suspected as discriminating unfairly against foreign opium, and for the most part have so far been successfully resisted by His Majesty's Representatives in China by an appeal to existing Treaties. But Indian experience shows that for the effective regulation of the It is desirable opium habit a licence system for all classes of dealers is necessary. that advantage should be taken of the presence of the Opium Commission to have the subject thoroughly examined on the spot, with a view of seeing whether something cannot be done to meet the wishes of the Chinese Government by arrangements which shall be fair to foreign opium. Viscount Morley therefore thoroughly approves the suggestion on this head which Sir J. Jordan states that he made to the Chinese Minister at an interview on the 5th January.
I am, &c. (Signed) A. GODLEY.
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