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discuss, and in particular they consider that the following matters should be excluded from consideration by the conference :--

1. The arrangement made between His Majesty's Government and China respecting the progressive restriction of opium imports and of opium production in China.

2. Other existing treaties between the two countries.

I should also draw your Excellency's attention to the fact that in item (a) of the programme the epithet "uniform" is opposed to the express finding of the Shanghai Commission. The commission recognised that the production, manufacture, and distribution of opium could not be subjected to uniform laws, and it appears undesirable to His Majesty's Government, in view of this finding, that the question should again be raised.

I am to express the hope that you will, in communicating the purport of these observations to your Government, add the assurance that if the conditions which Ilis Majesty's Government have thought it necessary to propose as indispensable to the. success of a conference can be complied with, they will be glad to co-operate with the project of conventionalising the resolutions of the Shanghai Commission by means of an international conference.

I have, &c.

E. GREY,

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

C

29814

[September 9:28 SEP 10.

SECTION 3.

OPIUM.

CONFIDENTIAL.

[32830]

No. 1.

Sir C. Clementi Smith to Foreign Office.--(Received September 9.) Sir,

The Grange, Welwyn, September 8, 1910. I HAVE the honour to acknowledge the receipt of your letter of the 29th ultimo, inviting me to express my views on the memorandum by Mr. Brunyate regarding a report by Dr. Hamilton Wright which deals with the proceedings of the Shanghae Opium Commission.

It would not, I think, serve any useful purpose if I were to go over again the misleading and incorrect statements made by Dr. Hamilton Wright in the report which he has submitted to his Government. It will, I trust, suffice for me to say that I concur entirely in every comment on that report which Mr. Brunyate has made, and that, in my opinion, His Majesty's Government can rely on Mr. Brunyate's memorandum as containing au accurate account of what passed at the Opium Commission in regard to the matters about which he has written.

I am, &c.

CECIL CLEMENTI SMITH,

[2890 4-3]

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