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reins of authority with a firm hand and bring the supine local officials to a due sense of their responsibilities. If the new governor, Yuan Ta-hua, proves to be a man of this type, then hopes may be entertained that the progress made in the opium campaign during the past year may be continued.
OLIVER R. COALES, 2nd Assistant. Kashgar, January 10, 1911.
[This Document is the Property of His Britannic Majesty's Government.] 421
OPIUM.
CONFIDENTIAL.
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[February 13.]
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Sir J. Jordan to Sir Edward Grey.-(Received February 13.)
(No. 32.) Sir,
Peking, January 23, 1911. I HAVE the honour to report that the net total import of foreign opium into China in 1910 amounted to 31,332 chests, of which 30,705 chests came from India.
These figures, which the Acting Inspector-General of Customs, Mr. F. A. Aglen, has courteously placed at my disposal before publication, show a remarkable decrease in the import of the Indian drug during the past year as compared with the quantities imported during the years 1907, 1908, and 1909, namely, 48,530, 48,118, and 43,316 chests respectively.
It will be noticed that not only is the 1910 import well within the limit agreed upon if the annual reduction of 5,100 chests is made to start from 67,000 chests- že.. 51,700 chests for the third year-but it is even within the limit if the annual reduction is based on 51,000 chests, China's average import during the years 1901-5, namely, 37,500 chests; that is to say, no portion of the outstanding 16,000 chests, the average difference between the export from India and the inport into China, found its way into China during the past year.
The decreased import, apart from the definite withdrawal of the quota agreed upon, is mainly attributable to a falling off in the demand, owing to rise in price and the more rigorous enforcement by the Chiness authorities-notably in Canton-of anti-opium legislation. It is, moreover, probable that the merchants are carrying large stocks in Hong Kong at the end of the year, in order to be prepared for eventualities,
The return of values is not yet available, but it may safely be assured that the average valuation of all three kinds of Indian opium-Patna, Benares, and Malwa- in 1910 will be considerably higher than in former years.
Prices in Hong Kong never went below 1,600 dollars a chest during the year, and for eight months kept well over 2,000 dollars. In April Benares opium touched the record price of 3,000 dollars a chest.
The Indian opium markets in Hong Kong and Shanghai, always of a speculative character, were subject to violent fluctuations in 1910, in part owing to the rumoured intention of the Chinese Government to prohibit the use of opiuni within a shorter period than that agreed upon, if not immediately; in part to the action of the Canton provincial authorities in imposing additional taxation involving interference with, and at times a complete cessation of, the wholesale trade.
The Hong Kong merchants undoubtedly made money on the rise in the early part of the year, but whether that and profits earned on the partial recovery at the end of the year were sufficient to cover losses incurred in the summer, when business, owing to the action of the Canton officials, was practically brought to a standstill, it is impossible for anyone not actually engaged in the trade to say.
A competent observer in Hong Kong informs me that, in his opinion, the balance of merchants' accounts, taking the business from April to December, would be on the wrong side.
I have requested His Majesty's consuls in the principal treaty ports to furnish me- with short reports on the foreign opium trade in their district during the past year, and a summary of these reports will be sent to you in due course.
I have, &c.
[1897 n-1]
J. N. JORDAN.