2
if certain conditions were fulfilled, be brought to a close within ten years, His Majesty's Government contemplated a settlement that would be final, and that was within the capacity of both countries to carry out, with due regard to the magnitude of the changes involved and interest affected. In this spirit it was accepted by the Chinese Government, which has not expressed a desire to reopen the question. The strict fulfilment of India's share of the agreement has imposed serious burdens on the Indian Government and on the native States of India. His Majesty's Government are not disposed to disturb the settlement arrived at with the Chinese Government.
[This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
CONFIDENTIAL.
[10346]
1
Sir,
No. 1.
Foreign Office to India Office.
540
[April 2.]
SECTION 2. C. O.
12549 RECE (REG: 28 APR 10
Foreign Office, April 2, 1910. I AM directed by Secretary Sir Edward Grey to acknowledge the receipt of your letter of the 24th ultimo, in the last paragraph of which you state that the Government of India concur in the suggestion that steps should be taken by His Majesty's Govern- ment during the present year to ascertain, by means of an enquiry conducted by a consular officer, the extent of poppy cultivation in China prior to the close of 1910, and assume that Sir Alexander Hosie will be selected for the purpose.
I am to express Sir E. Grey's satisfaction at the acquiescence of the Government of India in the proposed arrangement, and I am at the same time to state, for Viscount Morley's information, that Sir A. Hosie is prepared to carry out the investiga- tion. Sir E. Grey notes, however, that Lord Morley does not consider that any portion of the cost should be defrayed from Indian revenues.
Sir E. Grey would, however, point out that the primary object of the investigation is to ascertain whether at the end of the trial period of three years the Chinese Government have fulfilled their part of the contract and made a corresponding reduction in the internal production, so as to justify the Government of India in continuing their policy of reducing annually the export of opium from India to China by one-tenth. He considers, in the circumstances, that the Government of India might be held at any rate technically to be liable for the whole extra expenditure incurred, but in view of the opinion expressed by Lord Morley on the subject, and of the widespread interest displayed in this country in the opium question, Sir E. Grey is prepared to ask the Treasury to contribute from Imperial funds a sum not exceeding half the amount of the additional cost incurred.
With regard to the amount involved, I am to point out that Sir A. Hosie has stated that he will not require any assistance beyond a Chinese typist, who could, he says, be engaged at a small fee, and he does not think the locomotion expenses in such a country as China, which he knows well, are likely to be heavy.
The cost of Sir Alexander's salary would continue to be defrayed by this office, but it is proposed that, in addition, he should receive a subsistence allowance of 21. a-day, and that he should be repaid his locomotion expenses also. It is these expenses, other than his salary, which Sir E. Grey is of opinion should be shared by the two Governments, and I am to express the hope that Lord Morley will see his way to concurring in this suggestion.
I am, &c.
F. A. CAMPBELL.
[2719 b-2]