281

[This Document is the Property of His Britannic Majesty's Government.]

20484

OPIUM.

CONFIDENTIAL.

[28713]

No. 1.

Foreign Office to Colonial Office.

[July 26.3

SECTION 1.

Sir,

Foreign Office, July 25, 1911. I AM directed by Secretary Sir E. Grey to state, for the information of Mr. Secretary Harcourt, that the following telegram was received by His Majesty's Minister at Peking from the Governor of Hong Kong on the 18th instant :----

"I am directed by Hong Kong Opium merchants to transmit following telegram to you:-

"Government of India's July sale realised: certificated, average 3,370; uncertificated, 1,600 rupees. Strong incentive to smuggle into China. Uncertificated large shipments are expected here on 23rd July. Urge Wai-wu Pu to use all efforts to prevent smuggling, as our large stock of certificated, costing high price, seriously jeopardised.'

Sir J. Jordan replied on the 19th instant by telegraph that a representation on the subject to the Chinese Government was open to serious objection. The Chinese native press was blaming the Government of India for action which it represented as a direct encouragement to smuggling, and the suggested communication to the Wai-wu Pu would probably be met with a request that that Government should take steps to prevent exports of uncertified opium exceeding the requirements of the markets out of China. He added that, in view of the impossibility of discontinuing the sales in India without three months' notice, he could only suggest that, to meet the situation, Hong Kong should be closed to all uncertified opium except so much as might be required by the opium farmer.

I am to request that, if Mr. Harcourt has no objection, Sir F. Lugard may be instructed by telegraph to state his opinion on Sir J. Jordan's suggestion.

I am to add that the Chinese Customs authorities have expressed the view, which is shared by Sir J. Jordan, that it will be extremely difficult, if not impossible, to prevent the smuggling of opium into Southern China.

[2106 66-1]

I am,

&c.

F. A. CAMPBELL.

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