dequat cut a tramnood sidT)
[This Deaument is the Property of His Britannic Majesty's Government.)
6.0.
OPIUM.
10008 RECO & Reef 16 JUN II
[May 10.]
CONFIDENTIAL.
SECTION 2.
[17897]
No. 1.
Extract from the "Times" of May 10, 1911.
THE OPIUM TRAFFIC.
Mr. T. Taylor asked the Under-Secretary for India whether he could state the result of the negotiations with China regarding the termination of the Indo-Chinese opium traffic, and whether the new agreement permitted China to exclude Indian opium as soon as she could show that her own small remaining production had entirely stopped. He further asked for information about the opium now in bond at Hong Kong and treaty ports.
Mr. Montagu. The treaty was signed with China yesterday, and the summary of that treaty which appears in the "Times" of this morning may be taken as correct. The answer to the second question is in the affirmative. Roughly speaking, I believe the amount of uncertificated opium now in the treaty ports and Hong Kong is about 21,000 chests. On the assumption that that figure is correct, the Indian exports of opium to China during the year 1912 will be 18,500 chests, as against 25,500 chests which they would have been if this stock had not been taken into account.
Mr. Keir Hardie asked what provision had been made to make up the loss to revenues of India.
Mr. T. Taylor asked whether the Indian Government had not already received as much money as they expected during the whole nine or ten year period owing to the great reduction in the quantity of opium produced in China.
Another Ministerial Member asked whether any contribution was to be made from the Imperial Exchequer towards the burden proposed to be put on the Indian taxpayer under the treaty.
Mr. Montagu.The result of the reduction in the output of opium has been to inflate the prices received for opium. During the next seven years the revenue received by India from the export of opium to China may entirely disappear--a revenue of over 3,000,000% It is rather premature to consider the question of a contribution from the Imperial Exchequer until it is seen what China does under the new agreement. It is interesting to know that the suggestion is made by a representative of the British taxpayer.
Mr. MacNeill.---How does it come to pass that this China Opium Agreement, which is a matter of very great importance(Hear, hear)--has been ratified absolutely behind the back of the House of Commons altogether, and that this House now learns of it for the first time? (Opposition cheers.)
Mr. Montagu-The method of concluding treaties with foreign countries is well known to the hon. Member, and if he has any objection to it he must address his objection to my right hon. friend the Secretary for Foreign Affairs.
Mr. MacNeill. I have asked him often. (Laughter.)
Colonel Yate.-Is it the fact that by the agreement India will be robbed of 3,000,000 of revenue, so that the revenues of Persia may be increased?
Mr. Montagu.-The Government of India have decided, so soon as may be, to stop the sale of opium to China. (Ministerial cheers.) I have received no intimation of the unwillingness of the Indian cultivator and taxpayer to bear his part in this meritorious policy.
Colonel Yate.-How much revenue will be lost to Tudia, and will it accrue to Persia by this policy?
Mr. Montagu.-If the hon. Member will study the terms of the agreement when they are available, he will see that precautions have been taken that no other supply of opium shall reach China in opposition to the supply from India. (Hear, hear.)
[2011 -2]
550