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manufacture and of distribution in the manufacturing countries. The Powers participating in the Conference, in dealing with Recommendation 5 of the Shanghai Commission, will therefore have to consider whether they are prepared to impose severe restrictions on the manufacture of and trade in morphia and cocaine in their respective countries. His Majesty's Government suggest that the United States Government should ascertain from the several Powers whether, if a Conference is held, they are prepared to discuss in it the morphia and cocaine question from this point of view, and invite them to undertake, with a view to such discussion, the indispensable preliminary enquiries into trade conditions and to collect statistics of manufacture and export. His Majesty's Government on their part will now set on foot the necessary enquiries in this country.
3. Until satisfactory assurances are obtained from the Powers on this point and the preliminary enquiries have been completed, His Majesty's Government consider that the convening of a Conference would be premature. As regards the subjects for liscussion, other than morphia and cocaine, in the event of a Conference being convened, His Majesty's Government consider that they should be those indicated in the recommendations of the Shanghai Commission, and they must take exception to the items numbered (h), (l), (m), and (n) of the tentative programme proposed in the Circular letter of the United States Government. These they are not prepared to discuss, and in particular they would exclude from consideration by the Conference---
(1) The arrangement made between His Majesty's Government and China respecting the progressive restriction of opium imports and of opium production in China.
(2.) Other existing Treaties between the two countries.
It might also be pointed out to the United States Government that in item (a) of the programme the epithet "uniform" is opposed to the express finding of the Shanghai Opium Commission. The Commission recognised that the production, manufacture, and distribution of opium could not be subjected to uniform laws.
4. The Committee consider that a reply in this sense would tend to secure a satisfactory basis for the proposed Conference, and would define the scope of its deliberations.
5. The Committee have been shown a telegram dated the 4th July from the Viceroy to the Secretary of State for India, stating that Dr. Hamilton Wright's report on the Shanghai Commission, which the United States Government have presented to Congress, gave a false and misleading account of the proceedings and views of the Commission. and expressing serious concern that the United States should have adopted a garbled presentation of the Commission's attitude as a starting point for further international action. They suggest that when the memorandum which is on its way from India is received, the purport of the Indian Government's protest should be embodied in the reply to the invitation of the United States Government, or in some other suitable way communicated to that Government.
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