C.0.
246
R&S. 1673
SO WIN 12
1912.
386
From Viceroy, 6th June 1912.
P.--Please see your telegram dated 3rd June on the subject of opium. you the complete text of the memorial from opium which We think it expedient to send merchants together with our views, having in view the possible pressure
Our latest information as to may be brought to bear by parties interested. course of events in China is contained in despatch dated 29th April from British Minister at Peking to Foreign Office. My telegram dated 25th May 1910 explains that our being unable to deal with likelihood of mischievous rumours It is in our opinion of the highest places us in a difficult position. importance that up-to-date information should be supplied to us throughout as to the situation in China, and regarding any representations which Jordan may make to the Imperial Government in China, and with regard to renewal of the cultivation of opium, which seems to have been extensive according to reports in the newspapers and Parliamentary questions. For instance, we have not received any official information in confirmation of a statement made by Sassoons in another telegram to the effect that appeals made by their representatives in China to Jordan have received the reply that every possible attempt has been made to cause the treaty to be observed by the Chinese Government, who seem to be either unwilling or unable to make the provinces obey their will.
We are of opinion, however, that whatever may be state of affairs in China at present, the request of the merchants that the sales should be discontinued or postponed is quite inadmissible for the reasons set out
below:-
It
(1.) The notification of 21st November 1911 by which the Calcutta sales for the year were fixed requires three months' previous notice to be given of any reduction in the quantities to be put up for sule. You make the suggestion that uncertified opium should be sub- stituted for certified, but no reduction in the proportion of either class is contemplated by the notification. Moreover, the quantities for markets outside Chino were fixed with due regard to the requirements of such markets, and we are therefore against increasing them at the expense of certificated opium, as this would afford ground for the complaint that exports to non-China markets are in excess of requirements and may be smuggled in China. is also necessary to give three months' previous notice of any reduction at Bombay sales, as collector reserves the right to vary conditions only after such notice. The sale month by month of the amounts specified is contemplated by the conditions--please refer to Separate Revenue Proceedings of the Finance Department, Nos. 671 and 59 of December 1911 and March 1912 respectively. (2.) Any loss which may be suffered by merchants must be looked on as one of the ordinary risks incidental to trade. Opium has yielded them immense profits in the past and also, it is believed, during the present operations, and they cannot expect us to modify our arrangements to suit them. China's repcated violation of obligations in the past has, no doubt, suggested to traders the prudence of anticipating similar possibilities on this occasion.
(3) The disingenuous demand of the merchants that sales should be stopped has largely in view the enhancement of the values of the large stocks which they now hold.
(4.) If India stops sales even for
· a time only her position in regard to the
enforcing of the terms of the Agreement with China will of necessity he prejudiced.
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