[This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
CONFIDENTIAL.
573
[July 12.]
SECTION 2.
V. 0.
DEGE 2 AUG 12
[29537]
No. 1.
Sir J. Jordan to Sir Edward Grey.-(Received July 12.)
(No. 268.) Sir,
9
Peking, June 26, 1912. WITH reference to your telegram No. 94 of the 17th instant and to my reply No. 134 of the 18th, I have the honour to forward to you herewith copy of a despatch addressed to me as Dean of the Diplomatic Body by the senior consul, Shanghai, transmitting a letter from the foreign banks at Shanghai, complaining of the loss caused by the action of the provincial authorities at Chekiang in prohibiting the importation of Indian opium while not preventing the cultivation of the native drug.
:
I have, &c.
J. N. JORDAN.
Your Excellency,
Enclosure 1 in No. 1.
Senior Consul to Dean of Diplomatic Body.
Shanghai, June 17, 1912. IN continuation of my telegram of to-day's date, I have the honour to forward herewith copy of the letter received from the foreign banks of Shanghai on the subject of the importation of Indian opium in Chekiang.
Enclosure 2 in No. 1.
I have, &c.
D. SIFFERT.
Sir,
Foreign Banks to Senior Consul.
Shanghai, June 15, 1912. THE undersigned banks have the honour to draw the attention of the consular body to the critical state of the opinn trade. For many years past it has been the custom of the different banks to finance shipments of opium from India to this port, and in the ordinary course of business to make advances on the same when it has been stored here waiting sale.
In making such advances they have provided for the ordinary market risks, but have depended on the Chinese Government fulfilling its obligations in the matter of international treaties and agreements.
Since February last the Chekiang authorities have prohibited the importation and trade in Indian opium, in absolute contravention of existing treaties, causing accumulation of stocks in Shanghai and heavy deprecation in the value of the same.
Owing to this high-handed and illegal action the opium market has been paralysed, the merchants having been unable to move off their stocks and repay the money the banks have advanced to them, and should the present state of affairs be allowed to continue, disastrous failures may result involving the banks in heavy losses.
The amount of money at present locked up in this trade amounts to several millions of pounds, a considerable part of which has been advanced by us.
While probibiting the trade in Indian opium, it is a matter of common knowledge that the Chekiang authorities have allowed the cultivation of the native drug in that province to continue unabated, and that it is sold freely in Shanghai
We understand that these facts have already been brought to the notice of His Britannic Majesty's Minister by the opium merchants, and that as a result of his representations the Peking Government, while expressing their desire to adhere to the treaties and agreements of the former Government of China, declare their inability to impose their wishes on Chekiang province.
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