2
The alternative to re-exportation is the continuance of a trade which is conducted under discreditable conditions, which exists practically on sufferance and by means of threats, and which will expose us to constant criticism and reproach for another eighteen months. We are open also, as it seems to me, to the charge of moral incon- sistency in our international dealings, for while in Europe we actively urge the ratification of The Hague Convention, we are in China fostering and upholding a trade which the mere act of ratification must tend to extinguish. On the one hand we closed the opium divans in the international settlement at Shanghai, while on the other → we licensed more shops for the sale of opium. Not only is the settlement a greater consuming and distributing centre than ever, but it would probably be no exaggeration to say that the closing of the opium shops would postpone the absorption of the stocks to an indefinite date. The Chinese know as well as we do that we dare not in the last resort enforce our opium treaties, and the situation is an undignified one which reacts unfavourably on all our relations with China.
The spontaneous withdrawal of the stocks would produce an excellent impression, and would go far towards removing the feelings of resentment and soreness which now exist in the minds of the Chinese. It would be a just and generous act which would form a fitting end to a trade which has become a moral anachronism; whereas if we prolong the sales and extract the last farthing from the traffic, we shall certainly go down in Chinese history as a people who ended as we began, by forcing opium upon China. The end, if generous, will do much to obliterate the remembrance of the past and to remove the only blot which has stained our reputation in the Far East.
The generosity is one which both the Government of India and the opium merchants can well afford. Both have made great and unexpected profits out of the trade during the last few years, the surplus over the estimated revenue from opium in India during the three years 1911-13 having exceeded 6,000,000/
I would submit then, Sir, for your consideration that the Government of India should take back the stocks at the original cost, plus freight, insurance, storage, interest, The aucrifice of the and other reasonable charges to be assessed with expert assistance, merchants would be their prospective profits. But the vested interests of the banks of different nationalities who have, in the course of trade, made large advances to the foreign importers, should be adequately safeguarded. I would strongly deprecate, as certain to mar its effect, any attempt to make the Chinese share the expense of the arrangement. While others have made profit, they have incurred heavy financial sacrifice in the cause of opium suppression. Finally, I would recommend that the re-exported chests should be treated as forming part of the fixed annual export of Indian opium to non-China markets, and that this export should be proportionately reduced for such time as may be necessary to get the stocks into local circulation in the new markets. Without this provision their mere transference to Singapore or elsewhere would simply result in their being smuggled back to China, and the measure would do far more harm than good.
I have, &c.
J. N. JORDAN.
(This Document is the Property of His Britannic Majesty's Government.}_
OPIUM.
CONFIDENTIAL.
4571]
No. 1.
C.O
8563
January 31.;
9 MAR:4
SECTION 1.
Sird, Jordan to Sir Edward Grey. —(Iteccized January 31.)
No. 11. Confidential.) Telegraphic.)
YOUR telegram No. 9 of 29th January,
Peking, January 31, 1914.
I should be grateful for your views regarding Chinese proposal contained in the first part of my telegram: No. 5 of 16th January, as I am being pressed for a reply.
The Chinese propose to take over remaining stocks of certificated opium, and they make three specific requests: (1) That we give their proposal our sympathetic consideration; (2) that we should arrange a reasonable rate for the purchase price; (3) that payment may be accepted in instalments.
If the proposal is accepted in principle they are prepared to work out the details. Proposal comes at an inopportune moment, but it is difficult to withhold a reply unless we are prepared to state that we have an alternative scheme for the disposal of the stocks.
My own idea would be to inform them confidentially and in general terms that we hope to propose a solution for the disposal of the stocks as soon as provinces are examined, but this may not satisfy them.
As regards last paragraph of your telegram, duty is not as a rule paid until stocks are removed from boud, and the point therefore presents no practical difficulty.
(Sent to India,)
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