[This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
CONFIDENTIAL.
[2014]
No. 1.
[January 14.]
SECTION 2.
185
"
Sir,
London Chamber of Commerce to Sir Edward Grey.-(Received January 14.)
Oxford Court, Cannon Street, London, January 13, 1913.
FAR Eastern section.
I have the honour to refer to my communication of the 22nd July, 1910, on the subject of the attitude of China towards the Indian opium trade.
I may
remind you
that in the following year, namely, 1911, His Majesty's Government concluded a new agreement with China, granting considerable concessions with a view to gradually terminating the trade, and sanctioning an increase in the import duty from 110 taels per chest to 350 taels, provided that all restrictions illegally imposed by the provincial authorities were at once withdrawn and no others instituted.
Since this new agreement was signed, however, the provincial authorities appear to have embarked upon a fresh crusade against the Indian opium trade-their action, I am credibly informed, being supported by the Central Government-with the result that all ports are now closed against Indian opium, and severe penalties are imposed by the new Criminal Code on smokers and all persons found dealing in or in possession of opium.
The Far Eastern section of this chamber is seriously concerned as to the heavy stocks of Indian opium which have accumulated in Shangbai and Hong Kong, and I have been instructed by the section to communicate with you, therefore, in view of the large interests involved, both banks and merchants.
The section views with grave anxiety China's probable attitude towarde treaties generally, if allowed to lightly disregard an agreement made so recently as the 8th May, 1911, and is strongly of opinion that His Majesty's Government should impress upon China the necessity, in the present instance, either of giving facilities for working off existing stocks in accordance with agreement, or of taking over the stocks, of which some 4,500 chests have already paid duty.
I am to add that, in the event of such a settlement not being possible in the near future, the section is strongly of opinion that the Government of India, whose action is largely responsible for the present position of affairs, should repurchase the stocks, and thus avoid a financial crisis.
I trust that this proposal may have your serions consideration.
Yours faithfully,
CHARLES E. MUSGRAVE,
[2766 0-21
Secretary.
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