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

OPIUM.

CONFIDENTIAL

F 100/100/10]

No. 1.

[January 10]

SECTION 1.

Mr. Clive to Bart Curzon.-(Received January 10, 1921.)

(No. 731.) My Lord,

Peking, November 9, 1920. WITH reference to Sir Beilby Alston's despatch No. 377 of the 25th May last, relative to the traffic in opium at Tsingtao, I have the honour to transmit to your Lordship herewith a copy of a letter addressed by the Secretary of the Japanese Legation to the secretary of the Peking branch of the International Anti-Opium Association, announcing that the Japanese Government have decided to abolish entirely the system of opium monopoly at Tsingtao and in the Kwantung leased territory.

It is understood that the year in question refers to the fiscal year ending the 31st March, 1921.

I have the honour to enclose also a copy of a despatch from His Majesty's vice- consul at Tsingtao containing his observations on this interesting piece of news, which would appear to justify the hope of some improvement in the position in regard to the trade in narcotics in the two localities in question.

(Copies to Tokyo and India,)

Enclosure in No. 1.

251

I have, &c.

J

R. H. CLIVE.

Dear Sir,

Japanese Legation to Anti-Opium Association, Peking.

October 5, 1920.

WITH reference to your letter of the 10th June last, regarding the trade in opium and other narcotics in Kwantung leased territory and Tsingtao, I am directed by Mr. Obata to inform you that, having referred the contents of your communication immediately on its receipt to his Government, he is now in receipt of a reply from them that it has been definitely decided entirely to abolish the opium monopoly system in the two localities in question in the course of this year.

As regards illegal traffic in general in those territories, it is already a long time since it was prohibited, and now the local authorities have been warned to exercise special diligence against the sale of such drugs not for medical purposes.

all, &c.

1. M. TOKUGAWA, First Secretary.

Enclosure 2 in No. 1.

(No. 54.) Sir.

lee-Consul Archer to Mr. Clive.

Tsingtao, October 25, 1920. I HAVE the honour to acknowledge the receipt of your despatch of the 12th instant, instructing me to forward any observations that I may have to make regarding the announcement by the Japanese Legation of the impending abolition of the opin monopoly system at Tsingtao.

The letter from the Japanese Legation to the International Anti-Opium Association is interesting in that it is herein officially admitted for the first time that an opium monopoly in fact exists in Tsingtao. The existence of this monopoly has been a matter of common knowledge ever since the Japanese occupation of Tsingtao, but the details of the agreement between the Japanese Adininistration and the Chinese opium larmer, Liu Tzu Shan, have been kept absolutely secret; no figures as to the amounts of opium consumed and the revenue accruing to the Administration have ever been disclosed, and the whole business has been carefully guarded against publicity. It has therefore never hitherto been possible definitely to prove the existence of the monopoly system,

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