[This Document is the Property of His Britannic Majesty's Government.
OPIUM.
CONFIDENTIAL.
2752334
Rece
Rros 22 AUG 1 [July 26.1
SECTION 2.
[29422]
No. 1.
Messrs. E. D. Sassoon and Co. and D. Sassoon and Co, to Foreign Office.-(Received July 26.)
Sir,
9, Fenchurch Avenue, July 25, 1911. REFERRING to our letter of the 10th instant on the subject of uncertificated opium being shipped in quantity to Hong Kong, we are pleased to learn from India that the Government has notified the trade that in the November and December auctions the quantity of uncertificated opium will be reduced by 1,000 chests per month. We only regret that this decision was not arrived at earlier, as business in China is at a standstill, the regular dealers refusing to buy certificated opium, as they anticipate a considerable drop in values owing to smuggled uncertificated opium.
We take this opportunity of bringing to your notice that on the date the new agreement came into force there were in transit between Hong Kong and Shanghai 332 chests of uncertificated Bengal opium. On arrival of the opium at Shanghai the Customs authorities refused to accept the old duty of 110 taels, and claimed the new duty of 350 taels. When arranging the agreement with China, His Majesty's Minister at Peking overlooked this possibility, and China is quick to take advantage of the oversight. It is surely not in the spirit of the agreement that, whereas uncertificated opium in the treaty ports and in Hong Kong was to enjoy the old duty, opium shipped just before the 8th May at Hong Kong for the treaty port of Shanghai, and in transit at the time the agreement was signed, is denied the same privilege.
May we urge that His Majesty's Government may see their way to take up the matter strongly with China, and not allow the latter to take what is manifestly an unfair advantage at our expense of an accidental omission in the agreement. We have already suffered sufficiently during the past year from the illegal interference of the Chinese provincial authorities with our trade, without having to bear this further unjust loss.
We have, &c.
C. D. SASSOON AND Co. DAVID SASSOON AND CO. (Ltd.).
[2106 co-
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