[This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
CONFIDENTIAL.
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[61102]
No. 1.
[April 28.]
SECTION 2.
་
(No. 73.) Sir,
Sir J. Jordan to Sir Edward Grey.-(Received April 28.)
Peking, March 31, 1915. WITH reference to my despatch No. 54, I have the honour to enclose copy of the report of the annual meeting of ratepayers held at Shanghai on 22nd March last.*
From the report it will be observed that the ratepayers adopted the Council's proposal to hold four drawings of opium shop licences at intervals of six months, the first to take place on 30th June, so that the last shop will cease to sell in March 1917. An amendment reducing the limit for the suspension of licences by a year was rejected. The statement made by the chairman of the Council at the meeting that "with regard to what has been published in the annual budget with regard to the British Government's attitude towards the opium question in Shanghai, His Majesty's Minister gave me no authority for the statement and was not aware that it was being made," referred to a paragraph in the Council's estimates for 1915, circulated among the the ratepayers a fortnight before the meeting. The paragraph in question began by defining the Council's proposals as to opium licences, subsequently adopted by the ratepayers, and continued that the Council was aware that there was a certain body of opinion favouring more drastic and speedier action in regard to opium, but the finance committee had been actuated by the wish to achieve the end desired without unfairness to a bona fide section of the Settlement's trade, and added that "in any event there is satisfaction in the statement that, so far as the Council is aware, these proposals are not disapproved by the British Government, which, of all the Treaty Powers, is overwhelmingly the most concerned." As soon as I had cognisance of the matter I telegraphed to His Majesty's consul-general at Shanghai that the Council should be informed that the statement regarding the British Government had been made without my knowledge or authority, and that the whole of the paragraph in question should be deleted. The estimates had, however, been circulated, and the chairman of the Council contented himself by the remarks above alluded to in his speech.
In my despatch No. 28 reported an interview at Shanghai in December last with representatives of the Opium Combine, at which Mr. Ezra had admitted to me that the combine were ready to pay duty on the bonded stocks, and that the subsequent sale of the stocks would then be a matter for the municipal council and the ratepayers of the settlement to regulate. It seems possible, therefore, that in the event of the closing of Kiangsu this year the combine may elect to pay duty on the stocks in bond and plead that these were on the market for sale. The "floating balance" for sale in the International Settlement referred to in Mr. Pearce's speech may later presumably be held to include all stocks on which duty has been paid. The number of chests unsold on 1st March was 5,686, exclusive of 1,500 chests sold but not yet delivered to Chinese dealers.
I have, &c.
J. N. JORDAN.
* Not printed.
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