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¡This Document is the Property of His Britannic Majesty's Government.
C
6815
CHINA TRADE.
CONFIDENTIAL.
[27687]
No. 1.
Race 10 AUG CO
[July 22.]
SECTION 1.
Sir,
Colonial Office to Foreign Office.--(Received July 22.)
Downing Street, July 21, 1909. I AM directed by the Secretary of State for the Colonies to transmit to you, for the information of Sir Edward Grey, with reference to a letter from the Colonial Office of the 18th August, 1908, a copy of despatches from the Governor of Hong Kong on the subject of illicit traffic in prepared opium between Hong Kong and China.
I am, &c.
FRANCIS J, S. HOPWOOD.
Inclosure 1 in No. 1.
Governor Sir F. Lugard to the Earl of Crewe.
My Lord,
Hong Kong, June 7, 1909. I HAVE the honour to forward, for your Lordship's information, copy of a despatch which I have addressed to His Majesty's acting consul-general at Canton on the subject of illicit traffic in prepared opium.
Inclosure 2 in No. 1.
I have, &c.
F. D. LUGARD.
Sir,
Governor Sir F. Lugard to the Acting Consul-General, Canton,
Hong Kong, June 4, 1909. YOU will recollect that upwards of a year ago, at the instance of the Chinese Government, this Government consented to prohibit by legislation the trade in prepared opium with China, and an ordinance was passed on the 3rd July, 1908, The Government prohibiting the export of prepared opium from this colony to China.
of China at the same time gave a pledge that it would suppress the illicit export of prepared opium from China for importation to Hong Kong. During the period that has elapsed since that pledge was given constant seizures have been made of opium being illicitly imported into the colony, and I have from time to time brought the matter to the notice of his Excellency the Viceroy through yourself. Although the seizures amount to an average of almost one per diem, the opium farmer is of opinion that not more than 10 per cent. of smuggled opium is detected.
2. I am well aware that his Excellency is keenly alive to this matter, and has done everything that has suggested itself to him with the object of searching for and seizing opium illicitly exported, and it is because I am entirely convinced of his genuine desire to put a stop to this traffic and to vindicate the pledges given that I now place my views before you for communication to his Excellency,
3. In my opinion it is "beyond the wit of man" to devise any system which shall prevent the smuggling of prepared opium either to Hong Kong or to the Straits so long as the price of the article remains double in those places what it is in South China. The one and only way in which this illicit traffic can be suppressed, and China can keep her pledge to this Government, is by raising the price of opium in China to a parity with its price here, when it will no longer be a source of great profit to import it. 4. The course adopted by China, presumably to this end, is to agitate for higher duties on foreign opium, or to endeavour to create monopolies of foreign opium contrary to treaty. I would point out that owing to the altruistic policy of Great Britain the quantity of foreign opium which may be imported is now limited, and is annually decreasing. It forms a proportion of the total opium consumed in China of only to according to various estimates, and is therefore a comparatively negligible quantity. Foreign merchants, however, may be depended upon to secure the best price
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