[This Document is the Property of His Britanne Majesty's Government.)

OPIUM.

CONFIDENTIAL.

[May 18.]

SECTION 2.

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received May 18.)

[18982]

(No. 127.) (Telegraphic.) R.

OPIUM Agreement.

Peking, May 18, 1911.

Work of separating certificated and uncertificated opinm is attended with much difficulty, and is proceeding very slowly owing to insufficient acquaintance of Customs officials with Indian Government's marks. Meanwhile labelling of uncertificated opium necessary to secure it same privileges as certificated opium is being seriously delayed.

Question is further complicated by fact that 13,000 chests at Shanghai paid duty just before 8th May without, however, being removed from custom-house bonded warehouses, and question of protecting this opium against discrimination has to be considered.

To meet this situation Chinese Government have proposed that a round sum of 17,000 chests should be accepted by both sides as reduction to be made by Government of India in respect of uncertificated stocks. This figure does not, of course, include amount of uncertificated import during next two months, and is in excess of amount to which China would be entitled after a strict investigation. But its acceptance would greatly simplify and expedite solution of complicated problem.

(Sent to India.)

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