[This Document is the Property of His Britannic Majesty's Government.]
410
OPIUM.
CONFIDENTIAL.
[4035]
C A
1235 [February 3.]
SECTION 1.
Prot 6 MAR
No. 1.
¡
Messrs. E. D. and Messrs. D. Sassoon and Co. to Foreign Office.-(Received February 3.)
Sir,
9, Fenchurch Avenue, London, February 2, 1911.
WITH reference to previous correspondence on the subject of the Canton Opium Regulations, it was hoped by the British merchants interested in the trade that His Majesty's Government would ere this have been able to arrange with the Chinese Government a satisfactory settlement of the opium question, as it was gathered from your letter of the 25th October last that certain proposals in regard to the opium question in general were then under consideration,
From a telegram received yesterday from Hong Kong it would appear, however, that no agreement has been arrived at, as we learn that--
"The Canton opium monopoly has been transferred to the Opium Guild, and the tax has been increased by 200 dollars per chest, the revenue being intended to compensate the provincial treasury for the anticipated loss due to the abolition of the gambling monopoly."
From the above, it is evident that matters have gone from bad to worse. In the early stages of our correspondence we pointed out that the action of the Canton Viceroy, if not promptly and vigorously dealt with, would prove to be only the thin end of the wedge. The increase of this illegal tax from 300 dollars to 500 dollars per chest within nine months of the institution of the original impost evidence not only of the correctness of that forecast, but also shows the utter contempt in which the Chinese hold existing treaties, treaties on the strength of which British merchants have been led to purchase opium from the Indian Government in the belief that His Majesty's Government, would afford them the customary protection in carrying on a legitimate trade. As matters are shaping now, it would not be surprising if in the course of a few months British merchants interested in the opium trade found themselves confronted with a total prohibition, in which case the result would prove disastrous not only to the merchants themselves, who would have no outlet whatever for their stocks, but also to the financial position, as indicated a few months back by the leading Eastern banks in their joint letter of protest.
The position has now become so acute that we would urge His Majesty's Govern- ment to press for an early settlement of the whole question.
We have, &c.
E. D. SASSOON AND Co. D. SASSOON AND CO. (Limited),
[1897 e-1]
(D. GUBBONS, Manager).