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Claims that cultivation and the importation of native opium Agreement of 1911. have ceased in most of the chief provinces in China will probably be justified as a Our export trade to those consequence of the action of the Central Government.
provinces could be brought to a close under the agreement if these claims are broadly reasonable and rigid evidence can be dispensed with. This course would seem to be more in accord with the dignity of the British Government, and it would not embarrass our present financial position.
P.
To prevent loss of time this is being repeated to the British Minister, Peking.
(5.)
From Viceroy, December 30, 1912.
Kindly refer to our other telegram, dated to-day, dealing with the general position in regard to opium. We seek your sanction to arrangements proposed with the object of suspending sales of opium for China until it appears that the demand is restored, as we believe that consequences may be serious should further addition be made to the stocks in China. It is proposed to announce at once that from April next, and until further notice, there will be no sales of certificated opium. This will comply with In the meantime, with a view to proving requirements of three months' notice. whether a genuine demand exists, we propose, for the sales in January, February, and It has already been notified that passes March, to impose a substantial upset price. for the export of 13,820 chests of Malwa opium would be allowed in 1913, and this being so, we are willing to purchase as excise opium, on the usual terms, the difference We do not between this number of chests and the number actually exported in 1913. consider that this concession is in any way binding on us if the market in China is closed, but as an act of grace it should go a long way towards preventing any just grievance among the rulers and people of the opium-producing States. The concession might necessitate a substantial restriction of the area under poppy in the united provinces, but it is understood that under the present agricultural conditions no great difficulty would be occasioned.
(2.) So far as uncertificated opium is concerned we are prepared considerably to reduce sales for 1913, and we suggest 9,000 chests as a maximum. But we urge that you should definitely recognise this as being only a temporary measure proposed with a view to facilitate the diminution of stocks lying in treaty ports and not founded on The any proved reduction in the quantity consumed in countries outside China. figure can be revised when it is seen whether China's prohibitory measures are sufficiently effective to induce merchants to send their supplies of unsold certificated opium to other
countries.
The matter is of the utmost urgency, and we should be glad to receive your orders very soon.
P.
(6.)
From Viceroy, December 30, 1912.
We have assumed in our two telegrams of to-day on the subject of opium that you cannot ensure that China will without delay carry out her treaty obligations thus enabling disposal of large accumulations of opium in that country soon enough to prevent a possible financial crisis.
(Repeated to Peking.)
limitation of export to non-China using countries. Unfortunately measure has come too late, and we scacrely avoid the appearance of yielding to force what we might have made a graceful concession in June last.
There is, I fear, very little prospect of possible market for 29,000 chests now in China, and their disposal becomes a serious question. Eleven foreign bankers at Shanghai have sent renewed protest.
Shanghai magistrate is going round with an armed guard sealing up all the opium shops outside the settlement, and armed police are posted at the doors of the wholesale dealers with orders to arrest anyone attempting to do business with them. Similar situation obtains in Yang-teze provinces.
P.
(Sent to India.)
(8.)
From Secretary of State to Viceroy, Finance Department, January 2, 1913. The assumption on which the proposals contained in your three telegrams dated the 30th ultimo, on the subject of opium are founded is confirmed by Foreign Office. You propose
I. To announce at once that from April next and until further notice no sales of certified opium will be held;
2. To impose for the January, February, and March sales a substantial upset price; and
3. To make a reduction in the amount of uncertificated opium to be sold in 1913, fixing 9,000 chests as a maximum.
I sanction these proposals and request that you will send me by telegraph a summary of the orders which you issue in accordance with this sanction.
The other proposals in your telegrams will be the subject of a further communication from me.
(9.)
From Viceroy, January 4, 1913.
Your telegram of the 2nd January: Opium.
The April sale of Bengal opium was fixed for the 1st of that month, and it was not possible therefore to give three months' notice in respect of that sale, but only 170 chests are in question. We have issued orders suspending sales of Bengal certified from and including sale of May next and suspending sales of Malwa certified from and including sale of April next. We have also ordered upset price of 4,500 rupees in case of Bengal certified, and 2,500 rupees in case of Malwa certified to be imposed at the sales respecting which it has not been possible to give notice of three months.
We have issued orders also informing trade that amount of uncertified opium to be For the rest we offered for sale this year will be 9,000 instead of 13,200 cheats. await your orders on remaining points referred to in our three telegrams of the 30th December.
(7.)
(No. 1.) R.
Opium.
Sir J. Jordan to Sir Edward Grey.
Peking, January 1, 1913.
Telegrams of the Government of India to the Secretary of State for India of the 30th December.
Stoppage of sales is absolutely necessary and should be accompanied by a strict
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