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[This Document is the Property of His Britannic Majesty's Govern.nent.]
324
OPIUM.
CONFIDENTIAL.
[133372]
J
(No. 145.) Sir,
८०
No. 1.
Mr. Alston to Mr. Balfour.-(Received July 5.)
[July 5.]
C. O
SECTION 1 53704
REC
REG 1 NOV 17
Peking, May 11, 1917. WITH reference to my despatch No. 74 of the 26th February last, on the subject of the Opium Combine Agreement, I have the honour to report that on the 1st instant I received a deputation from the Opium Combine at Shanghai, consisting of Mr. Edward Ezra, opium merchant, and Messrs. R. S. P. White-Cooper and R. N. Macleod, legal
advisers to the combine.
The object of their visit to Peking was to explain to me the whole circumstances of the agreement and to press me to support their claim that the terms of the agree- ment should be carried out. Copy of a despatch from His Majesty's consul-general at Shanghai dated the 27th April, forwarding a statement of the combine's position, is enclosed herewith.
I enclose a note of the two interviews which took place, drawn up by Mr. Ker, the commercial attaché to this legation, who was present. You will observe that while I was unable to promise direct intervention in the matter of the agreement, I undertook to enter a protest against the action of the Chinese Government in closing the ports of Cinton and Shanghai to the importation of opium. Copies of the Customs notification issued at Shanghai, and of the note which I have accordingly addressed to the Chinese Government on the subject are likewise enclosed herewith,
I gather from informal enquiries at the Wai-chiao Pu, as well as from reports received from His Majesty's consul-general at Shanghai, that the Chinese Government are unt opposed to the principles of the purchase, although there is a considerable amount of opposition even to this principle. The Government are, however, seriously concerned with the questions of whether the price is a fair one, and whether the com- missions received by individuals in connection with the transaction are not excessive. The agreement with the Chinese (or Portuguese) merchant, Mr. Wong, which is referred to in the notes of interview and copy of which is enclosed herewith, is siguificant, in regard to these questions. It would appear from this that out of 8,200 taels per chest payable by the Chinese Government, only 5,700 taels per chest go to the opium hollers, the balance of 2,500 taels being paid to Mr. Wong by way of reward for services rendered. The existence of the latter agreement does not appear to have been disclosed to the official investigators appointed by the Chinese Government to examine into the circumstances of the transaction, but the fact that such an enormous sun is payable over and above the net price paid to the owners of the opium seems to me to justify to some extent the misgivings of the critics of the action of the Vice- President and the Cabinet in the matter.
The last enclosure in this despatch is a statement, communicated to me by Mr. Ezra, which was apparently drawn up for the benefit of the investigators, to justify the price of 8,200 taels in bonds. I do not attach much importance to this statement, firstly, because it is based on market prices in China instead of on the original sale prices in India, and secondly, because the charges mentioned for interest, insurance, and storage storage appear to me to be considerably exaggerated.
await the receipt of the Wai-chino Pu's reply to my note, or some other indication of the attitude adopted by the Chinese Governinent, before requesting your instructions as to the further action to be taken in the matter.
Enclosure 1 in No. 1.
I have, &c.
B. ALSTON.
:
(No. 161.) Sir,
Consul-General Sir E. Fraser to Mr. Alston.
Shanghai, April 27, 1917. BEGGING reference to my despatch No. 154 of the 16th April, I have the honour to report that on the 20th instant Messrs. Ezra and Nissin with the Opium Combine's lawyer, Mr. White-Cooper, called on me to protest against the failure of the Chinese
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