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

OPIUM.

CONFIDENTIAL.

[38081]

No. 1.

[September 23.)

SECTION 1.

Sir,

Foreign Office to Colonial Office.

Foreign Office, September 23, 1912. I AM directed by Secretary Sir E. Grey to acknowledge the receipt of your letter of the 9th instant, enclosing copies of reports from the Governor of Hong Kong, respecting the opium traffic with Macao.

I am to transmit herewith, to be laid before Mr. Secretary Harcourt, copies of two despatches from His Majesty's chargé d'affaires at Lisbon, on the subject of the representations which he had, under instructions, addressed to the Portuguese Government.*

In Sir E. Grey's opinion, it is probable, in view of the private note addressed by Colonel Freire d'Andrade to Mr. Wingfield, copy of which is enclosed in the latter's despatch No. 130 of the 2nd instant, that the Portuguese Government will in their official reply maintain that Macao needs a far larger quantity of opium than the Governor of Hong Kong is ready to admit. Mr. Wingfield states, in fact, in his despatch No. 132 of the 6th instant, that Colonel Freire d'Andrade has suggested privately that Macao should receive the same number of chests as Hong Kong without that colong being able to increase its present number, regardless of the fact that the Chinese proportion of the latter is six times that of the former. He (the colonel) also implies that Hong Kong desires to benefit at Macao's expense.

Macao claims that she needs a large quantity of opium for export to Mexico and Panamá. Both these countries have now signed the Opium Convention of the 23rd January last, so it may be hoped that they will take steps to prohibit or restrict the importation of prepared opium, in accordance with article 7. The effect of such measures would be that the requirements of Macao would be considerably lessened.

A copy of your letter under reply is being sent to His Majesty's Legation, and will, no doubt, assist Mr. Wingfield in any further conversations which he may hold with Colonel d'Andrade. But in Sir E. Grey's opinion the chances of obtaining a satisfactory official reply from the Portuguese Government will be materially strengthened if Mr. Harcourt will be so good as to furnish, for communication to Mr. Wingfield, a further detailed statement in support of the contention of His "Majesty's Government that the maximum amount of opium required for Macao does

not exceed 440 cases per annum.

I am, &c.

W. LANGLEY.

Mr. Wingfield, No. 130, September 2; ditto, No. 132, September 6, 1912.

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