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

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OPIUM.

CONFIDENTIAL.

(44529]

No. 1.

SECTION 1.

(No. 196.)

(Sir J. Jordan to Sir Edward Grey.—(Received December 6.)

(Telegraphic.) R.

MY telegram No. 194 [of 5th December).

Peking, December 6, 1910.

Wai-wu Pu, considering that my interview of 6th December may have given rise to some misunderstanding, furnished me yesterday with a memorandum, of which following is summary :---

1. The delay in concluding a new arrangement is not fault of Chinese Govern- ment, who some time ago furnished His Majesty's Legation with a memorandum on the subject. The British memorandum in reply was received only last month. Wai-wu Pu thon stated that question of increasing duty must first be included, and the interval has been consumed in discussion of this and other points.

2. British memorandum, while including certain proposals made by Wai-wu Pu, Wai-wu Pu merely agreed to examine contains many other demands of various kinds. memoranduma; they never accepted it.

3. When Wai-wu Pu first consulted Ministry of Finance it was merely with regard to enhancement of duty, but Senate has now unanimously passed resolutions shortening period for prohibition of cultivation and consumption of opium. Although this refers specially to native opium, the import of foreign opium is also very seriously affected. Senate at the same time urged Wai-wu Pu to modify arrangements formerly concluded with Great Britain. It will therefore now be necessary to consider not only increase of duty, but question of shortening period during which opium may be imported.

4. Wai-wu Pu's proposal for a shortening of period is not an absolutely uncon- ditional shortening, but a shortening to be determined in accordance with the provisions of the Bill before the Senate respecting native opium, the intention being to treat foreign and native opium on the same footing. It would be very unjust that foreign opium should continue to pour into country after native opium had been entirely suppressed.

5. On the receipt of a reply from Ministry of Finance, Wai-wu Pu will at once address me regarding points to be discussed.

(Sent to India.)

(1804 -1]

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