4

retarded sales, on the other hand it has done all in its power to expedite sales, so that when certain Bombay merchants tried to keep their stocks out of consumption, the combine compelled them to bring them in.

It is essential to maintain confidence, and if any attempt was made, or even suspected, that stocks would be thrown on the market by the foreign merchants, there would be a panic which would undo all the good which the influence of the combine has achieved.

We have therefore the honour to ask you to convey to the Foreign Office, through His Majesty's Minister, the thanks of ourselves and the other British opium merchants for conveying to us the warning in question, but at the same time to point out that we are doing all in our power to expedite the consumption of the stocks in hand, as the record of our work since the formation of the combine in the beginning of 1913 clearly shows.

We would only add in conclusion that we understand that Kwangtung and Fokien are included in the five provinces to be closed, and we may be permitted to mention that we have received information of extensive cultivation of opium in certain districts of these provinces. Particulars of the districts in question in Kwangtung have been supplied to His Britannic Majesty's consuls at Swatow and Canton.

We are, &c.

(For David Sasson and Co., Limited),

A. HOWARD, Manager. (On behalf of all importers),

E. D. SASSOON AND Co.

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

C.O.

OPIUM.

24265

REC°

[May 7.]

SECTION 1.

CONFIDENTIAL.

REA 6 JUL 14

No. 1.

[20287]

Sir,

India Office to Foreign Office.- (Received May 7.)

India Ofice, May 6, 1914.

I AM directed by the Secretary of State for India in Council to acknowledge the receipt of your letter of the 20th April, enclosing information, which is supplemented by the information forwarded in your letter of the 21st April, regarding the prospects of the closure of Chinese provinces and the disposal of the stocks of Indian opium, and submitting for Lord Crewe's concurrence a suggestion that the proposal for withdrawing the stocks should not be proceeded with.

I am to inform you, in reply, that Lord Crewe concurs in this suggestion.

am, &c.

I

T. W. HOLDERNESS,

0

[2146 g-1]

14

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