4
restrictions in Fukien and Chekiang. China's memorandum on opium, p. 49 of vol. ii, Report International Opium Commission, Shanghai, taken in conjunction with note by Fox, which formed enclosure to despatch from British Minister at Peking to Foreign Office, No. 110, dated the 11th March, 1911, indicates that northern and Yang-tsze ports are supplied by Shanghai, and that supplies for Chekiang are received through central Fukien through ports on the southern coast. It appears from consular report on Shanghai for 1910, p. 9, that in consequence of excessive demands of merchants native buyers have been obliged to adulterate opium, as, failing this, prices of the raw drug would be too high for the poorer people. This would help to cause excessive stocks.
We hold strongly to the views contained in our telegram of the 6th instant. addition to the arguments brought forward there, sudden cessation of the enormous exports of opium from India to Hong Kong and China, the value of which in 1911–12 was nearly 10 crores, might cause the balance of trade to be upset and exchange disorganised.
[This Document is the Property of His Britannic Majesty's Government.]
7:
OPIUM.
CONFIDENTIAL.
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In
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No. 1.
C.O.
[June 19.]
SPOTION 2.1| 12
Sir,
China Association to Foreign Office.-(Received June 19.)
159, Cannon Street, London, June 18, 1912. I HAVE the honour to enclose herewith copy of a telegram received from the Shanghai branch of this association in regard to the opium question.
The London committee are aware that this inatter is already occupying the attention of the Foreign Office, and there is but little we can say to enforce the arguments that have been addressed to you direct by the merchants interested. The disregard of the agreement entered into so recently as May of last year is too glaring to admit of dispute. It would appear that the province of Chekiang is the principal offender, the authorities of which not merely ignore the agreement, but scoff at the orders sent from Peking.
The action of the Chekiang officials raises grave doubts as to their "honesty of intention" in the matter of opium suppression, and in the opinion of the association, their tolerance, or it may be their encouragement, of the renewed cultivation of native opium suggests that the motive is to secure a monopoly of supply to the native grower and a monopoly of taxation to themselves.
Meantime the suggestion of the opium merchants that sales in Calcutta should be temporarily suspended commends itself to this association. It would seem that in the interests of the Indian Government itself this would be a wise course to adopt. If sales are persisted in prices will probably fall to an unremunerative level, while, on the other hand, though a suspension of sales might cause a derangement of the year's budget, yet the ultimate loss to the Indian Government would probably be less in the long run than if sales are forced on an unresponsive market. In the latter event not merely would the Indian Government be a loser, but the market value of the huge stocks held in China would be dragged down to a low level, bringing disaster upon- the importing merchants concerned.
The association desires to draw attention to the concluding sentence of the telegram from Shanghai, which intimates that the real question is not that of the immediate subject of opium, but is one of violation of treaty rights, which, if permitted as regards opium, may give encouragement to a similar disregard of treaty obligations in other directions.
I have, &c.
G. JAMIESON, Chairman.
Enclosure in No. 1.
China Association, Shanghai, to China Association, London.
Protest
(Telegraphic.)
Shanghai, June 7, 1912. CHEKIANG province has been entirely closed to Indian opinn since February, contrary to agreement of May 1911. Cultivation of native opium continues. of British authorities locally and in Peking ineffective. In consequence of this prohibition, and also illegal restrictions in other provinces, stocks have been accumulating and price declining very heavily, causing ruinous losses to merchants. Minister, Peking, cabled that all possible efforts have been made to secure observauce of treaty, but the Chinese Government is either unable or unwilling to enforce its will on the provinces. Under the circumstances nothing more can be done on this side to relieve situation. Merchants suffering from great injustice; for whereas treaty rights are being violated by China with impunity, the Indian Government continues selling and flooding the China market, already overstocked, while the whole province of Chekiang, hitherto one of the principal outlets for Indian opium, is illegally closed. Request you approach Foreign Office and impress upon them the seriousness of the situation and urge that immediate steps be taken to enforce strict
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