[This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
CONFIDENTIAL.
37665
RECR Reot 9 DEC 10
[October 24.]
SECTION 1.
[38354]
(No. 138.)
(Telegraphic.) R.
No. 1.
Sir Edward Grey to Mr. Max Müller.
Foreign Office, October 24, 1910. YOUR telegram No. 162 of 29th September: Opium. You will have received from India a repetition of the Viceroy's telegram of 15th October to the Secretary of State for India.
His Majesty's Government are anxious to carry through a seven years' agreement with China on conditions named by you, with such modifications on points specified by Government of India as you can get Chinese Government to accept. Following changes would be necessitated in your conditions :--
To condition (a) of your clause 1 add words about local enquiries, as in (a) and (b) of Viceroy's telegram.
Lu condition (b) provide for withdrawal of taxation imposed by provincial authorities in treaty ports, as in (c) and (d) of Viceroy's telegrain.
After condition (b) insert condition as to Chefoo agreement, as in (e) of Viceroy's telegram.
You may retain condition (c) of clause 1, if you consider retention essential to agreement. But if retained, the undertaking should be conditional on the agreement being accepted and its conditions established, and on satisfactory proof of increase of excise taxation on indigenous raw opium.
In concluding sentence of your clause 1 insert words to give effect to (g) of Viceroy's telegram.
In your clause 2 condition (a) should be made subject to agreement being accepted and its conditions established, and to due notice being given to trade.
Condition (c) would require modification in view of Viceroy's objection. The Chinese officer might see and take note of each permit, or receive a numbered copy for transmission to his Government.
If
you have no exception to take to any of these changes, as likely to affect success of negotiations, please communicate revised conditions to Chinese Government, and press for speedy decision.
It is clearly understood that, until clause (f) operates, unscaled opium equally with sealed opium will be allowed to be freely imported without limit. This will enable existing stocks in Hong Kong to be worked off, and give time to the trade to adjust itself. A clear understanding on this point will enable Indian Government to fix earliest possible date for introduction of permit system.
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