2
3. Nothing has resulted from the representations made to the Government of Macao by this Government in this matter.
4. Representations have been made to the Secretary of State for the Colonies with a view to procuring a curtailment of the quantity of Indian opium imported into Macao, and the Secretary of State has been informed by telegraph of the large shipments reported in your letter under reply.
[This Document is the Property of His Britannic Majesty's Government.
OPIUM.
CONFIDENTIAL.
23
173
December 16.j
RECS 2 JAN 13.
SECTION 1.
I am, &c.
CLAUD SEVERN.
Ο
No. 1.
[53613]
Sir J. Jordan to Sir Edward Grey.-(Received December 16.)
Enclosure 4 in No. 1.
Governor Sir F. May to Mr. Harcourt.
Hong Kong, November 30, 1912. SASSOONS report that 250 chests of opium have been shipped Calcutta to
(Telegraphic.)
Macao.
(No. 470.) Sir,
Peking, November 29, 1912. OWING to the restrictions imposed on the sale of opium in Chekiang the import of Indian opium into that province has been almost entirely at a standstill during the last nine months. On the 1st ultimo His Majesty's consul at Hangchow reported by telegraph that a Russian merchant, with the support of the Russian consul-general at Shanghai, bad started an establishment at Hangchow for the retail sale of the drug. Mr. Savage had reason to believe that the provincial authorities were wavering, and he proposed to notify them that unless the resumption of sale by native dealers were permitted, he would support a claim by British merchants to adopt a similar measure.
As British merchants had never hitherto engaged in the retail opium trade, and as their right to do so under treaty seemed to me by no means clear, I replied to Mr. Savage by telegram that the course he proposed was unnecessary and undesirable. Before iny telegrain reached him, however, Mr. Savage, after consultation with His Majesty's consul-general at Shanghai on the subject, had already on the 2nd ultimo addressed a note to the tut, notifying him of the intention of the Shanghai importers to open retail shops, and justifying their claims to sell their opium, without molestation or restraint at the treaty ports.
I heard nothing more of this matter until the beginning of this month, when His Majesty's consul at Hangchow reported that a representative of the British opium merchants at Shanghai had taken over a portion of the Russian premises and begun the sale of opium retail; that the Chinese authorities had protested; and that Chinese police pickets were surrounding the premises and arresting all purchasers, with the consequence that siles had ceased. His Majesty's consul-general at Shanghai also forwarded to me by telegram a protest on the part of the opium merchants against the action of the Chinese authorities in arresting purchasers. I telegraphed in reply to Mr. Savage and Sir E. Fraser that in my opinion the establishment of branches of foreign firms for the retail sale of opium in foreign concessions and settlements in China did not harmonise with the policy hitherto pursued by His Majesty's Government, and was not in keeping with the undertakings given by ourselves and other Powers for suppressing the use of opium in concessions. I pointed out to them also that such a measure, to be effective in practice, would necessitate the protection of native purchasers, and might lead to conflicts which in the interests of the trade itself it was desirable to avoid. I stated that I would continue to make strong representations to the Central Government with a view to the removal of the prohibition of Indian opium in the province of Chekiang.
I have the honour to enclose herewith copies of correspondence exchanged with the Wai-chaio Pu on this question. In reply to their protest against the action of the British merchants, I expressed my willingness to accede to their request on condition that they should reissue the circular instructions of the 15th June, 1911, and give strict orders to the Chekiang authorities to withdraw the prohibition on the sale of Indian opium.
On the 10th instant telegraphed instructions to His Majesty's consul at Hangchow to endeavour to arrange a settlement on the above lines.
The despatch from Mr. Savage which I enclose herewith throws some interesting light on the various motives actuating the authorities at Hangchow. The unwarrantable excess of zoal displayed by Mr. Ezra in carrying out the instructions of his principals, will, I hope, make it easier for His Majesty's consular officers to withdraw from the opium importers such measure of support in these proceedings as they may have been led to promise.
The Wai-chiao Pu subsequently informed me verbally that they had sent the desired instructions to the Tutu of Chakiang, and I ascertained by telegram from His Majesty's consul at Hangchow that the tutu duly received them.
I have now received from the Wai-chiao Pu a memorandum recording the reissue
[2736 q-1]
B
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