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3
Sir,
Enclosure 2 in No. 1.
Eleven Banks to Senior Consul.
Shanghai, December 31, 1912.
WE have the honour to refer you to our letter of the 12th instant. The Presidential manifesto issued recently has caused great disappointment to the bankers and merchants interested in the opium trade, and we must strongly protest against the evasive and vague terms in which it is couched. It does not in any way direct the provincial authorities to abide by the terms of the opium agreement which they have flagrantly violated by summarily closing their doors to Indian opium, nor does it contain any reference to the circular instructions of the 15th June, 1911, which we were informed the President undertook to reissue. likely rather to encourage, than otherwise, the provinces in their high-handed attitude, As it stauds, the manifesto is and we cannot but view the situation with the greatest concern (and) anxiety.
We have pointed out in our previous communication the magnitude of the amount of money involved, and the very grave consequences that must result if any early solution of the present impasse is not arrived at The situation does not admit of the least delay, as all outlets for the heavy stocks in China are now closed, with the exception of the Foreign Settlements of Shanghai, and, commencing from to-morrow, dealing in opium becomes a criminal offence. It is now quite evident that the provinces have all along been acting with the approval and connivance of the Central Govern- ment, who are under the belief that extreme measures in respect of opium will not be reverted to.
China should, therefore, be made to understand, once and for all, that she cannot continue to play fast and loose with treaties solemnly entered into, and, in our opinion, nothing but strong action will have the desired effect.
The following banks therefore respectively beg that you will transmit this communication by cable to the diplomatic body in Peking.
Wo have, &c.
[Eleven Signatures follow.]
Now that the Indian Government has taken this extreme step, involving very heavy losses to the Indian revenue, in order to afford partial relief to the bankers and merchants from an impossible situation, it remains for the Chinese Government, in common fairness and justice, to observe its treaty obligations, and allow the working off of the stocks existing in China.
We shall be obliged if you will be good enough to transmit the above by cable to the diplomatic body in Peking, with a request that strong representation be made to the Chinese Government for the due fulfilment of its treaty obligations,
[Eleven Signatures follow.]
Enclosure 3 in No. 1.
Your Excellency,
Senior Consul to Sir J. Jordan.
Shanghai, January 10, 1913.
IN continuation of my letter dated the 3rd January, I have the honour to enclose a despatch received from the foreign banks of Shanghai, on the subject of the opium trade, and dated the 7th January, & summary of which has been transmitted to you by cable on the 8th January.
I have, &c.
Enclosure 4 in No. 1
D. SIFFERT.
Sir,
Eleven Banks to Senior Consul.
Shanghai, January 7, 1913.
WITH reference to our letter of the 31st ultimo, on the subject of the critical financial condition prevailing in connection with the Indian opium trade, we have the honour to inform you that telegraphic advices have since been received that the Indian Government has decided to suspend the monthly sales of opium for export to China, in order to facilitate the lightening of the heavy stocks in Shanghai and Hong Kong. While the action of the Government of India is likely to ease, to some extent, the future outlook, it cannot, by any means, be regarded as tending to relieve the present situation, unless the Chinese Government withdraws the illegal prohibitions to the trade.
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