A

OPIUM.

CONFIDENTIAL.

[33645]

No. 1.

CO

30132

RECO

Read ASEP 2617

SECTION 1.

4

Board of Trade to Foreign Office.-(Received August 26.)

Sir,

WITH reference to your letter of the 30th June, transmitting copy of a letter from

Board of Trade, August 25, 1911. the India Office, with enclosures, on the subject of the cocaine habit in India, I am directed by the Board of Trade to make the following observations for the consideration of the Secretary of State :-

Since the beginning of the present year record has been kept for the first time of the exports of cocaine from the United Kingdom, and from this it appears that during the period January to June (inclusive) there were exported 2,690 ozs. of cocaine of United Kingdom manufacture, while 17,924 ozs. of foreign cocaine were re-exported. None of the exports or re-exports went directly to any part of British India; the exports were mainly to Germany (more than one-half) and Japan, and the re-exports were almost entirely to Germany.

The Board have no reason to doubt that the British firms (who are all of good standing) engaged in the export of manufactured cocaine conduct their business through chemical manufacturers, recognised wholesale or retail chemists and druggists, druggists sundrymen, medical men and institutions, and the like, without any intention or desire that customs regulations should be evaded, and it is difficult, in the absence of international agreement, to suggest restrictions which would not unduly interfere with such legitimate business.

As regards the re-export trade, which appears to be entirely in the crude drug, any prohibition in the United Kingdom would have simply the effect of diverting the trade to other channels; it would not prevent other countries from obtaining supplies of the crude drug and dealing with them as they choose, and therefore would not serve the purpose which the Government of India have in view.

The Board are accordingly of opinion that little advantage is likely to be derived from anything short of an international agreement to restrict and control the trade in cocaine; but, should that be impracticable at present, an arrangement with Germany alone might possibly be of use, having regard to the extent to which manufacture and export are carried on in that country. The Board are not in a position to judge whether such an arrangement is possible, but they understand that the most important of the German firms mentioned in the despatch of the Government of India under consideration are of good repute and unlikely to participate knowingly in an illicit

trade.

It may be useful to note that the Board are informed that, while the crude drug comes to Europe chiefly from South America, and especially from Peru, the coca plant is now being grown largely in Java, and, to some extent also in Ceylon.

Finally, the Board desire to direct attention to the remarks contained in the extracts from various reports and despatches to the Indian Department of Commerce and Industry, which were enclosed in the Government of India despatch, as to the desirability of imposing heavier penalties for the illicit sale of cocaine in India and of strengthening the preventive staff. They venture to express their opinion that, if effect were given to these proposals, it is probable that the results would be more beneficial than those which could be attained by anything short of a complete international. agreement, even if that could be effectively carried out.

I am, &c.

GEO. J. STANLEY.

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