[This Document is the Property of His Britannic Majesty's Government]
405
OPIUM.
CONFIDENTIAL.
123169]
No. 1.
40
[May 31.]
SECTION 1.5 44 12
(No. 220.) Sir,
Sir J. Jordan to Sir Edward Grey.-(Received Atay 31.)
Peking, May 9, 1912. THE numerous complaints which have reached me regarding restrictions on the trade in Indian opium in Chekiang made it desirable to ascertain the amounts of stocks of the drug in the port of Shanghai whence that province is supplied, and on the 27th March I requested His Majesty's consul-general to furnish, as far as possible, details of present stocks, to compare them with the stocks held at the same period during the four preceding years, and to give the reasons for abnormal stocks and decrcased consumption, did such exist. I have the honour to enclose a copy of this despatch.
In his reply, dated the 15th April, a copy of which is enclosed, Mr. Fraser states that the present stocks in Shanghai are abnormal, and that one of the reasons given by a representative firm of importers is that the sale in India of opium for destinations other than China is far in excess of their actual requirements, and gives rise to considerable smuggling of the cheaper uncertified drug into China. In a subsequent despatch, dated the 24th April, copy of which is enclosed, Mr. Fraser forwards a copy of a letter from Messrs. E. D. Sassoon and Co., of Hong Kong, to thoir Shanghai firm commenting on the smuggling into China through Macao and other places, and stating that the only effective means to prevent smuggling is to reduce the export of uncertified opium from India to the actual requirements of non-Chinese markets.
Seizures of uncertified opium are still being made from time to time by the customs authorities, especially in the south of China, but the checking of this contraband trade is greatly hampered by a decision of the Chinese Government that confiscated opium shall not be sold in China, and it is no longer possible to suitably reward informers out of the proceeds of the sale of the drug, which has now either to be burnt or disposed of at a cheap price to the Japanese in Formosa.
The fact that seizures of uncertificated opium are being made is sufficient proof that its annual export from India, reduced though it was to 14,000 chests in 1911, is still in excess of the requirements of non-Chinese markets, and I cannot urge too strongly the desirability of reducing the export to the actual needs of countries outside China, for smuggling with its attendant evils will continue until the necessary steps are taken at the fountain head.
I have, &c.
Enclosure 1 in No. 1.
J. N. JORDAN.
(No. 14.) Sir,
Sir J. Jordan to Consul-General Fraser.
Peking, March 27, 1912. I AM desirous of obtaining information regarding the present condition of the trade in Indian opium in China, and I should be glad if you will furnish me, as far as possible, with answers to the following questions :--
1. What are the present stocks in Shanghai? Are they abnormal, and, if so, why?
2. What were the stocks in Shanghai at the same period during the years 1908, 1909, 1910, and 1911 ?
You should add to your answers any observations you may wish to make regarding decreased consumption, should such exist, and its causes.
am, &c.
[2602 hh-1]
J. N. JORDAN.