322
[This Document is the Property of His Britannic Majesty
OPIUM.
CONFIDENTIAL.
(5894)
No. 1.
356 ment.]
12296
[REC?
REG 12 APR 13
[February 7.]
SECTION 2,
Sir,
India Office to Foreign Office.-(Received February 7.)
India Office, February 6, 1913. I AM directed by the Secretary of State for India in Council to acknowledge the receipt of your letter of the 22nd January, and to suggest, for Sir Edward Grey's consideration, that the concluding portion of the reply which it is proposed to send to the London Chamber of Commerce should be expanded to read as follows, after the word "unavailing "; "And Sir E. Grey is not aware of any practicable method of forcing the Chinese Government to take over the stocks at Shanghai and Hong Kong. He cannot accept the view that the Government of India, whose action has been strictly in accordance with the agreement of 1911, and has thereby progressively reduced the amount of opium available for the China market, are responsible for the accumulation of the stocks, or are under any liability to repurchase them. I am to point out, further, that the Government of India, at the sacrifice of considerable revenues, have, by fixing a high upset price, relieved the dealers from the necessity for supporting the market, and have practically suspended sale of certificated opium with effect from the beginning of this year. They have further announced that sales of certificated opium will be formally suspended after the let April next, and they have also reduced the amount of uncertificated opium, to be offered for sale in the year 1913, from 13,200 chests to 9,000 chests."
With reference to the last paragraph of your letter under reply, I am to state that the Marquess of Crewe concurs in the anggestion that Sir John Jordan should be consulted as to the advisability of demanding from the Chinese Government a refund of the duty paid on opium that has not been admitted to China, or has been sent back from China under the orders of the Chinese authorities, or as the result of their action, after having paid import duty.
I am, &c.
T. W. HOLDERNESS.
[2806 g--2]