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

OPIUM.

CONFIDENTIAL

[25838]

No. 1.

Colonial Office to Foreign Office.-(Received June 6.)

[June 6.]

SECTION 3.

Sir,

Downing Street, June 5, 1913. I AM directed by Mr. Secretary Harcourt to request you to lay before Secretary Sir Edward Grey the accompanying copy of a despatch from the Governor of Hong Kong, in which it is suggested that steps should be taken to induce the French Government to regulate more strictly the opium traffic in Kwangchauwan.

2. Mr. Harcourt would be glad to learn whether Sir E. Grey is of opinion that any action could usefully be taken in the matter.

I am, &c.

(For the Under-Secretary of State),

H. J. READ.

Enclosure in No. 1.

Governor Sir F. May to Mr. Harcourt.

(Confidential.) Sir,

Hong Kong, May 3, 1913. I HAVE the honour to suggest that steps be taken as soon as possible to induce the French Government to regulate more strictly the traffic in opium in Kwang- chauwan.

2. From the French consul here I learn the following facts:——

(a.) The monopoly for the manufacture and sale of prepared opium and for the sale of raw opium in Kwangchauwan was leased for two years from the 1st January, 1912. It expires on the 31st December, 1913.

(6.) The annual rental of the monopoly is 45,000 dollars per annum.

No limit is fixed of the quantity of opium which the monopolist may import for local consumption and for export.

(d.) The resident population of Kwangchauwan is about 220,000. But the consul estimates that an equal number of Chinese come and go between Kwangchauwan and Chinese territory in the course of the year.

(e.) The number of chests of Indian opium imported into Kwangchauwan during 1912 was 570. I have no means of checking this figure, as raw opium is no longer exported from Hong Kong to the French possession. I have not the figures for Persian opium, of which I understand there is some importation also.

(f.) The number of chests of opium actually consumed in the territory of Kwang- chauwan during 1912 was 56.

In the despatch of the 14th September, 1911, addressed to Sir John Jordan by Sir F. Lugard, copy of which was enclosed in the latter's despatch No. 327 to you of the 15th September, 1911, a liberal estimate of the local consumption of opium at Kwangchauwan is put at 100 chests per annum. The figures furnished by the French consul show that not much more than half this amount was consumed in 1912. 3. Enquiries made by the superintendent of imports and exports principally from the Chinese maritime customs at Kwangchauwan have elicited the following infor- mation :-

(1.) The local consumption is stated by French officials to be 50 chests per annum only. It is considered by the maritime customs to be really considerably less. In explanation of the small consumption it is explained that the Chinese population is very poor.

(2.) It is estimated that two-thirds of the raw opium imported is smuggled in the raw state into China.

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