2
provisions, they must proceed in the usual way by negotiation with the treaty Powers.
As the Wai-wu Pu state that they have not actually rejected the memorandum it is to be hoped that, on further examination of its contents, and of the position which will arise if it is set aside, they will come to the conclusion that it offers a very liberal and reasonable solution of the opium question, and that its acceptance will be in the interests of China. The Chinese Government have from the first admitted that a direct arrangement of an informal kind for limiting the export from India is preferable to the alternative method of negotiating with the Powers a revision of the treaties. But any arrangement to be satisfactory to the interests of India must have regard to the fact that the two Governments originally agreed upon a period of ten years as not more than sufficient for the effectual accomplishment in China and in India of so great a scheme of reform, Such evidence as exists points to the fact that opium is still extensively cultivated in China, and that the Indian import is still relatively small. The Chinese Government must have been of this opinion in September last, when, in reply to our offer to continue the existing arrangement for a second term of three years, they made a point of extending it for the full remaining period of seven years.
I am to suggest that, if Sir Edward Grey sees no objection, His Majesty's Government should inform the Chinese Government of the objections entertained to their action, and should make it clear that, pending the resumption of negotiation on the basis of Mr. Max Müller's memorandum, His Majesty's Government will insist on the strict observance of treaty rights.
I am, &c.
ED. S. MONTAGU.
[This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
CONFIDENTIAL.
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Rest 7 JAN 1
[December 16.}
SECTION 1.
No. 1.
Sir J. Jordan to Sir Edward Grey -(Received December 16.)
(No. 202.) (Telegraphic.) R.
Peking, December 16, 1910. MY telegram No. 188 of the 12th December: Opium regulations. The Wai-wu Pu have informed me that the Viceroy of Canton has ordered the cancellation of the proclamation limiting transit of opium to Kiangsi.
[1804 9-1]