313

(signed)

I have &c.,

J.N.Jordan,

*982048

and the financial question of the redemption of the

details in connection with the working of the monopoly

before proceeding with any seriousness to work out any

of the Chinese proposals by His Majesty's Government

however, that Mr.Lu had been waiting for the acceptance

vance beyond this point. I gathered the impression,

of my conversations with Mr.Lu does not show any ad-

any detail when he presented his proposals. The result

Minister had evidently not worked out the scheme in

In my despatch No.60, I stated that the Foreign

the result of his representations.

Ministry of the Interior, and that he would let me know

would doubtless issue the necessary instructions to the

would lay the whole question before the President, who

appointed by the Minister. Mr.lu promised that he

¡

:

it was by no means certain, therefore,

could actually hand over any quantity

314

the merchanta

the opium with-

out payment. I was unable to enter into any detailed

financial discussion at present and said that it would

be well for the Chinese Government to formulate a scheme

for payment which could then be considered on its

merits. 10 Foreign Minister explained that the real

difficulty in founding a monopoly, and so reaching a satisfactory settlement, would possibly be found in the opposition of the provinces, They would be only too glad to undertake this monopoly themselves and would probably be jealous of any such enterprise if it was to be in the hands of the Central Government.

At a second interview on February 21st, I conveyed to the Foreign Minister the reply contained in your telegram().53 of February 14th. I laid emphasis on the points that fair remuneration must be made to the

A merchants; that the establishment of a monopoly

must be regarded as a means to an end namely the

eventual eradication of opium from China; that a speedy decision was essential in view of the stoppage of sales and the danger of speculation, which would

complicate

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