[This Document is the Property of His Britannic Majesty's Government.]
[March 27.CO
OPIUM.
CONFIDENTIAL.
[11218]
No. 1.
SECTION 13345
RECR Brot 25 OR 1
67
India Office to Foreign Office.(Received March 27.)
Sir,
India Office, March 25, 1911. WITH reference to your letter of the 23rd March, enclosing copy of Sir J. Jordan's telegram No. 80 of the 22nd March, regarding the opium negotiations with the Chinese Government, I am directed by the Secretary of State for India in Council to enclose, for Sir E. Grey's information, a copy of the Government of India's telegram of the 17th March, referred to by Sir J. Jordan, and of a telegram addressed to the Govern- ment of India on the 24th March, inviting their observations on Sir J. Jordan's telegram of the 22nd.
(Telegraphic.) P.
I am, &c.
T. W. HOLDERNESS,
Secretary, Hevenue and Statistics Department.
Enclosure 1 in No. 1.
Government of India to Viscount Morley.
March 17, 1911.
WITH reference to your telegram of the 4th March and to all the correspondence recently exchanged with Sir J. Jordan on the subject of negotiations about opium, his idea appears to be that if we secure by agreement a time limit, there will follow when it terminates these consequences, viz. :—
(1.) Admission into treaty ports will be refused to all opium uncertified. (2) Transit into interior will be refused to uncertified opium now in treaty ports. While accepting first consequence we are unable to agree to second, although we should have been ready to claim a free market only for chests sold or exported from India before the present year. Very serious effects on trade and on revenue would result from refusal of treaty rights to heavy stocks accumulated at ports. Such refusal would far exceed any reasonable expectations of China.
2. In the meantime, a further large increase in Canton licence tax is reported to us. No protests appear to be availing against fresh exactions, and our position becomes daily more unfavourable and difficult owing to the pressure China persists in applying by this device.
3. In view of this grave situation, it is necessary that we should once more define the rights which, under treaty and equity, we claim for India, and suggest the price we are ready to pay for their acceptance.
(a.) For all opium which, before expiry of time limit, entered treaty ports and paid duty, we claim an absolutely free market in China.
(b.) We contend that a stop should be put to unfair discrimination against Indian opium through persistent increases in licence duties.
(c.) Until China has conceded a reasonable agreement, and given us assurances for the future, we deny all liability to aid in reducing her imports.
4. If China accepts these claims and will settle all other differences now out- standing satisfactorily, we should be ready to offer in exchange the following concessions, and we suggest that Sir J. Jordan should be permitted to propose them at his discretion, and as may be required by the exigencies of the negotiations—
(a.) The levy of a consolidated import duty of 400 taels per chest on the under- standing that Chinese raw opium pays an equivalent tax.
(b.) A reduction from 16,000 to 12,000 chests of our exports to non-Chinese ports in 1912 and after. All serious danger of smuggling into China from Singapore when treaty ports are closed to uncertified opium would thus be obviated.
[1930 dd-1]
Tay