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only a hong was then opened at Nanking under the name of the Ho Chun hong to deal exclusively in foreign opium. This hoog was allowed to trade without interference for a short period, after which it was summarily closed and the manager arrested.

"In making representations to you on this subject we have no desire to identify ourselves with any opposition to the movement which is at present taking place in China for the ultimate suppression of opium consumption, but it is felt that a protest must be made against the establishment of the control which amounts to a monopoly in the sale of this or any other goods as being contrary to the existing treaties under which foreign trade is carried on.'

The consular body concur in the above view, and if such a monopoly is really being established they have the honour to request that the local authorities may be recalled to the observance of the treaty stipulations and forbidden to put any restriction of this kind upon the sale of a foreign import.

(Translation.)

Enclosure 3 in No. 1.

I have, &c.

D. SIFTERT.

Ts'ai Nai Huang, Shanghae Taotai, to Senior Consul Siffert.

H.T. 1/10/11 (November 23, 1909). ON the first day of this moon (the 13th November, 1909) I received the following despatch from his Excellency Chang, governor-general:-

"I am in receipt of a letter from the senior consul at Shanghae as to the sale of opium at Nanking.

[Despatch No. 783 quoted in full.]

"All the nations have publicly expressed their acceptance of the measures taken for the suppression of opium consumption. To secure this suppression the number of hongs and firms dealing in opium caunot be allowed to raise, but must be limited in the hope that little by little the consumption will diminish and finally stop. In reality this is in accordance with the conditions originally established by the circular regulations published under the authority of the Chen-wu Chu. As to the hongs and shops which were already established at the time where the importation of Indian opium had not yet been reduced, their trade will not be stopped. Opium is a most injurious article, and it is difficult to compare it with the other foreign imports. As to the Ho Chuu hong, it had been established in addition to the existing ones, such action was contrary to the regulations, and the late acting governor-general had already issued orders for its closing; this was really an act of inner administration towards the suppres- sion of opium; it seems that the States concerned might as well not interfere, and give assistance.

You will give reply in accordance with the above."

Having received these instructions it is my duty to send you this letter, hoping that you will take note and act in accordance.

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

OPIUM.

CONFIDENTIAL.

[3511]

(No. 14.) Sir,

No. 1.

'5653

RECO [January to 24 FEB 10,

SECTION 1.

Sir J. Jordan to Sir Edward Grey.-(Received January 31.)

Peking, January 10, 1910. IN my despatch No 477 of the 21st December I mentioned that His Majesty's consul-general at Canton had informed me privately of the release of the opium dealer at that port, who had been imprisoned for violating the licensing regulations, and I have now the honour to transmit to you copy of Mr. Jamieson's official report on the subject, from which it will be seen that the trade in foreign opium has reverted to normal conditions. Mr. Jamieson, you will observe, takes a somewhat different view of the question from that adopted by his predecessor, and apparently considers that the resistance to the regulations was encouraged by the foreign opium importers relying upon the diplomatic support of His Majesty's Government. This suspicion has, may say, been present throughout in my own mind when dealing with the case, and, as my despatch No. 448 of the 2nd December will have shown you, I have always been careful to disclaim any intention of assuming protection over the native sellers of opium, and have merely asked that the arrangement between His Majesty's Govern- ment and the Chinese Government should be carried out in the spirit which animated both parties at the time it was made. The Wai-wu Pu have always admitted the reasonableness of this contention, but have asserted, on the authority of the Viceroy, that the recalcitrant attitude of the native dealers was due to expectation of receiving support from us rather than to any vexatious restrictions placed upon their trade as represented to me by the foreign opium importers and the acting consul-general at Canton.

The matter has now been set at rest by the release of the imprisoned dealer and the resumption of the trade on normal lines on the basis of an arrangement made with the Opium Prohibition Bureau.

I have, &c.

(No. 119.)

Sir,

Enclosure in No. 1.

Consul-General Jamieson to Sir J. Jordan.

J. N. JORDAN.

Canton, December 20, 1909. I HAVE the honour to submit to you a short review of the present position at Canton with regard to restrictions regulating the sale of opium.

In ny telegram No. 31 of the 25th November I reported that, according to information furnished by Messrs. David Sassoon and Co. (Limited), Liang, the dealer who was arrested for non-compliance with the orders of the Opium Prohibition Bureau, had paid a fine of 3,000 dollars, but, notwithstanding, had not been released, that no direct shipments were being made to Canton, whereas supplies were going forward by a roundabout route.

As a matter of fact Liang was set at liberty immediately afterwards, and the other dealers, recoguising that there was no alternative but to submit to regulations, even if restrictive, wisely came to an arrangement with the bureau.

As a result the trade in foreign opium reverted to normal conditions, and it continues to be carried on on normal lines.

You are, of course, aware that this question is one which I found pending on my arrival here, and, after having taken it up, I could not resist the conclusion that, relying on the diplomatic support of the British Government, those interested were determined at first not to accept regulations of any kind, and hoped that, in pursuing this course, they would be successful. Finding that the representations made have not enabled them to free themselves absolutely from control, they have decided to abandon their original tactics, and the deadlock would thus appear to be at an end. Quietly to accept the altered situation would, however, argue weakness of the original position

[2600 kh-1]

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