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[This Document is the Property of His Britannic Majesty's Government.]

98

OPIUM.

March 13.]

CONFIDENTIAL.

SECTION T

со

27438

[11744]

No. 1.

Rece

Colonial Office to Foreign Office.-(Received March 13.)

Rraf 9 AUG 13

(Confidential.) Sir,

Downing Street, March 12, 1913.

I AM directed by Mr. Secretary Harcourt to request you to lay before Secretary Sir Edward Grey the accompanying copy of telegraphic correspondence with the the Governor of Hong Kong regarding the importation of opium into Macao.

2. Mr. Harcourt understands that there is some probability that the Indian Government will be prepared to agree to allow the export of opium to Macao as long as export to Hong Kong is permitted, and that the only point on which an under- standing with the representative of the Portuguese Government has not been arrived at in the course of the discussions which have taken place at the Foreign Office, is the question of the transhipment of opium at Hong Kong.

3. It will be seen that the Governor takes strong exception to the suggestion that 260 chests of opium should be permitted to enter Macao annually for local consumption, and Mr. Harcourt is aware that, although this figure was agreed to by the representatives of the Foreign Office, India Office, and Colonial Office, it was felt to be an exceedingly liberal estimate of the legitimate requirements of that colony.

4. In these circumstances Mr. Harcourt is inclined to think that, unless Sir Edward Grey considers that such a course might result in breaking off the negotiations with the Portuguese representative, it would be desirable to inform M. da Fonseca of the attitude adopted by the Hong Kong Government, and to urge that the amount should be reduced to a maximum of 180 chests per annum.

5. If Sir E. Grey concurs, Mr. Harcourt would suggest that arrangements should be made to resume the discussion with M. da Fonseca at an early date.

am,

&c.

(For the Under-Secretary of State),

Enclosure 1 in No. 1.

H. J. READ.

(Confidential.)

(Telegraphic.) P.

Governor Sir F. May to Mr. Harcourt.

[Received March 5, 1913.]

MY confidential despatch of the 3rd December. Freitas, Portuguese Minister, has conferred with me on the way to Peking, unofficially, at the request of the Portuguese Government, as to the limitations to be placed on import of opium at Macao for the use of farmer on the expiration of present contract on the 31st July.

He urged allowance of 300 chests per annum for local consumption, 240 for export trade.

The maximum which this Government could regard as reasonable is, I insisted, 180 chests per annum for local consumption and 240 for export to Mexico, with the condition that export is only permitted on production of certificates from the Mexican Government permitting import.

I ascertained confidentially from the Kong Kong farmer, to reassure Freitas as to the financial effect of such reductions, that he would offer 400,000 dollars per annum for the Macao farm on those conditions. The present rental is only 140,000 dollars.

I hope you will be able to induce the Portuguese Government to accept my figures. Despatch follows.

[2850 n-1]

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