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probably will be argued that our effort to suppress opium in Chinese interests need not outrun the efforts of the Chinese authorities themselves. In a matter like this no doubt Yunnan may not practise what Peking preaches, and it is unquestionable that a great deal of cultivation goes on in Yunnan, and that some officials are making money out of opium, But to all arguments of this kind I would reply that the price of opium has risen in Namkham from Rs. 45 to Rs. 60 a viss in 1914 to Rs. 325 a viss at present, a price which has occasionally been exceeded: that the smuggling of opium to China has practically superseded smuggling to our plains districts, and that the Chinese are freely immigrating to British territory to grow opium. In the face of these facts I do not see how any one can maintain that the Chinese effort has been a sham and its results illusory.
16. In previous paragraphs of this letter I have alluded to repressive measures which have been enforced in the Sinlum Hill Tracts, and I would explain that since 1913 under executive orders given by Mr. Lewisohn opium grown in quantity exceeding domestic requirements has been regularly destroyed whenever found in the Sinlum Hill Tracts. In literal compliance with the orders referred to in paragraph 7 above directing that Chinese British subjects residing in the hill tracts should be dealt with on the same footing as members of hill-tribes the cultivations of Chinamen have been destroyed alike with those of Kachins. These orders (except as regards Chinese) have no legal basis, but have been carried out without opposition or contretemps. Circumstances have now changed, however, for whereas in former years it was possible to destroy a fair proportion (though nothing like the whole) of the crop, the great increase in cultivation now makes it impossible to deal with any but a small fraction, and this has accentuated the inequality of treatment inseparable from such methods. The Assistant Superintendent. Siulumkaba, whom I expressly consulted on this matter, is unable to deny that haphazard destruction causes irritation and annoyance, and admits that the absence of any unfortunate incident is attributed largely to the fact that he is universally known in the hills. I would add, what Mr. Scott is unable to say, that his personal influence is largely to be thanked for this fortunate result, and that I should be most unwilling to let any other officer follow the same course. Further the Local Government has passed explicit orders, which are still in force, that every precaution should be taken against creating unrest in the hills. The position is clearly unsatisfactory, in view of the fact that such action has no sanction from the Local Government and in view of the much greater dimensions of the crop, and I have felt myself unjustified in main- taining the previous practice in its entirety. I have therefore directed the Assistant Superintendent not to destroy the crops of Kachins. In view of the entrance of the Chinese into the field, however, I have had no hesitation in instructing him to destroy opium cultivated by them. This is in accordance with the law and I am confident that it is justified by local conditions. A minor point is that the destruction of these crops, which involves arduous work, has to be carried out by the military police escorts of civil officers, and, apart from the dubious advisability of employing military police on such work, it would be necessary to strengthen the Assistant Superintendent's escort considerably if he were to carry out crop destruction wholesale as in previous years.
17. For all the reasons indicated above, and as the war has now ended, I think that the time is now ripe for the Local Government to press to its conclusion the action which it contemplated in 1914, and I earnestly trust that this view will be accepted. The difficulties which have arisen are partly due to the ambiguous attitude of the Government which has never as vet authorised definite measures to prohibit cultivation and possession. I have no doubt that, if the order of Government is once given, the Sinlum Hills Kachins will loyally accept it, and the danger of disaffection is negligible. In any case I consider that the risk of trouble will be no greater if a definite line is taken and made public in the hills than has been the case in the past. In this view the Assistant Superintendent, Sinlumkaba, concurs. This is apart from the consideration that I do not feel justified in carrying on widespread destruction of opium without the Local Government's orders.
18. A very substantial new element has now, however, entered into the case in the shape of the widespread cultivation in the Northern Shan States. As I have shown above, this is having serious economic results which affect the people of the Sinlum Tracts and it would come hard on them to deprive them of an easy source of wealth without doing anything to reduce the prices of necessary articles. Moreover it would be unfair, and would certainly strike them as unfair, to prohibit them from cultivating opium if Kachins, Shans and Chinese were allowed to continue to do so
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in the Northern Shan States next door. Much though I would rather not complicate the problem, therefore, I feel bound to mention these points and to express the view that if possible the Northern Shan States adjoining Bhamo should be dealt with on the same footing as the Bhamo Kachin Hill Tracts.
19. My present object in addressing you is that the question in these wider aspects may be again brought under the consideration of the Local Government, and that the instructions which I have given, as described in paragraph 16 above, may be confirmed. I would recommend that except for action within these narrow limits, no attempt should he made to deal with the problem of the crop which will ripen in I think that the March and which is likely (unfortunately) to be a very good one. measures which, I hope, will be taken, should come into operation only with regard to next year's crops and that as long notice beforehand as possible should be given of these measures. The Superintendent, Northern Shan States, to whom I have mentioned the matter, is also strongly of this opinion. If these general recommenda- tions are accepted I would respectfully ask that I may be given an opportunity o' expressing my views as to the definite action to be taken with effect from next year to carry out the policy of prohibition. I am aware that Mr. Lewischn submitted definite proposals with this object as long ago as 1914, but I am personally of opinion that, at least as regards cultivation, we must invoke the principle of communal responsibility if we are to succeed, and I should like to have the opportunity of re-examining the former proposals with that object in view. In any case it seems advisable to avoid adding a discussion of these questions to this letter which is primarily concerned with questions of general policy which affect the Northern Shan States as well as Bhamo.
ANNEX 2.
Note, dated May 28, 1919, by Messrs. Stirling and Thornton. The difficulty of dealing with this question has greatly increased since 1914, when we submitted a joint report on the subject. At that time the export of opium to Yunnan was from the Northern Shan States and the unadministered Wa country: Siam and French Indo-China absorbed the surplus of Kengtung; the production of the Southern cis-Salween States was small and was consumed locally. The position now is entirely different. Siam and French Indo-China no longer offer a legitimate market; after local needs have been provided for, the whole surplus of the Shau States (north and south) is available for export to Yunnan, and the extravagant prices paid by Yunnanese merchants have attracted it to that province.
2. High prices have led to a great extension of cultivation and a largely increased outturn. The old opium-producing circles produce more than they even did before, and opium-growing is now an important industry in wide areas where it was formerly unknown. In every way the problem is more difficult and complex than it was five years ago. The course which we recommended in 1914 might lave met the situation then, but would not be practicable now.
3. As something must be done to carry out our obligations to China, we think We would the first step should be towards control and restriction of cultivation, deal first with cultivation west of the Salween.
We should like to recommend prohibition of cultivation in all the cis-Salween States, but there are so many areas where it is the sole, or the main, source of We livelihood of the people that we hesitate to propose such a drastic measure. think, however, that total prohibition here is the end to be aimed at. We suggest that notice be given that Government intends to control the output of opium after two years; that a large reduction will be insisted on; and that no one will be allowed to cultivate the poppy except under licence, which will be granted only in special circumstances. We think that two years' notice should be given because the people must have time to turn to the cultivation of food grains, because special cfficers must be appointed and must carefully select the areas where licences shall be granted; and because we think action should be deferred till after 1921, on account of the census,
The principle to be followed is total prohibition wherever this is practicable. In many places, poppy cultivation is only a subsidiary (though lucrative) industry; in many places it is of recent introduction; in many places the cultivators are recent immigrants from China. In all these cases prohibition could be enforced without undue hardship, and the result would be to restrict and localise areas where cultivation was still permitted.