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C. O. [This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
CONFIDENTIAL.
[24992]
No. 1.
EGE16 JUL12
[June 17.]
SECTION 1.
(No. 94.) (Telegraphic.)
Sir Edward Grey to Sir J. Jordan.
Foreign Office, June 17, 1912. YOUR telegrams Nos. 128 and 129 of 8th and 11th June. Reasons for and against suspension of opium sales in India were considered at conference at which Secretary of State for India and I were present. We came to the conclusion that, in view of the arguments contained in the telegram of the Government of India of 6th June, it would be impolitic, if not impossible, to postpone or discontinue sales, or in any way alter publicly announced conditions of sales. It would be unfair to expect Indian Government to make such a sacritice for the Shanghai market, to bring financial loss on itself, on the native states and the native cultivators, and to lay itself open to a charge of inconsistency and breach of faith in order to enable a few firms interested in the opium trade in China to realise a profit.
We are told that two or three firms have cornered the opium trade, and have already realised considerable profits, which they do not wish to see diminished through We recognise depreciation of stocks held by them in Shanghai and elsewhere.
strength of your argument as to disorganisation produced by revolutiou, but consider that this was reason for merchants to exercise prudence instead of artificially raising prices at auctions to unprecedented figure. We cannot, therefore, on the information before us urge the Government of India to interfere in manner suggested.
Have you any reliable and independent information that advances cannot be repaid and that commitments of banks are likely to involve financial crisis?
Question of further control of export of uncertificated opium is under consideration. (Repeated to India.)
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