I replied that they might count on receiving all possible diplomatic support when- ever they had a legitimate grievance.

In regard to the question of the suspension or curtailment of the sales in India, I told him that this was a question which the Indian Government had decided, and I referred him to Sir T. Holderness.

July 11, 1912.

This Document is the Property of His Britannic Majesty's Government.]

572

OPIUM.

CONFIDENTIAL.

[29536]

No. 1.

[July 12

SECTION

AUG 12

(No. 267.) Sir,

Sir J. Jordan to Sir Edward Grey.--(Received July 12.)

Peking, June 26, 1912. WITH reference to your telegram No. 95 of the 17th June, instructing me to inform the Chinese Government of the attitude which His Majesty's Government may have to assume in regard to the question of recognition of the Chinese Republic in consequence of violations by the provincial authorities of the Opium Agreement of the 8th May, 1911, and other treaty engagements, and the failure of the Central Government to impose its will on the provinces, I have the honour to transmit to you herewith a copy of a memorandum on the subject which I communicated to the Wai-chiao Pu on the 24th instant.

I have, &c.

J. N. JORDAN.

Enclosure in No. 1.

Memorandum communicated to Wai-chiao l'u.

HIS Majesty's Minister having reported to His Majesty's Government the action of the Chinese provincial authorities in doing everything to hamper the trade in Indian opium, while doing nothing to prevent the cultivation of the native drug, has now been instructed by flis Majesty's Principal Secretary of State for Foreign Affairs to inform the Chinese Government that, after careful consideration of the facts before them, His Majesty's Government have reluctantly come to the conclusion that the present policy of the Chinese Government aims not at the extinction of the opium habit, but at the substitution of the native for the foreign drug, thus defeating the humanitarian objects of His Majesty's Government in negotiating the agreements of 1907 and 1911.

China, by frequently violating her promises under articles 1 and 7 of the agreement of 1911, has conferred on His Majesty's Government the right to denounce that agreement, and the Chinese Government must feel that the Government of India are acting generously as far as China is concerned in continuing to reduce the export in the face of her attitude, and that China would not be entitled to complain if the Government of India cancelled or suspended on their side the operation of the agreement.

His Majesty's Government are reluctant to bring the question of opium into the larger question of recognition, but they could only be expected, when the time comes, to grant recognition to the Republic of China if the Chinese Government were in a position to give such assurances as would fully safeguard British treaty rights and interests, and it will be obviously impossible for them to accept as satisfactory assurances on this point as long as the Chinese Government has to openly admit its inability to enforce treaty provisions in the provinces.

The continued failure of the Central Government to impose its will throughout the country, of which these flagrant breaches of an agreement signed at the request of China a little more than a year ago form ouly one of many instances, must materially retard the recognition of the Chinese Republic by His Majesty's Government unless a considerable improvement in that respect is shown before the time comes for recognition.

Peking, June 24, 1912.

[2510 m-)

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