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therefore, decided to erect a new and modern factory, for the preparation and packing of opium bubes, following the system adopted in the Netherlands Indies. Tenders were called for and the machinery ordered in the year 1910.
14. In December 1911 and January 1912, the first International Opium Conference was held at the Hague. Siam was represented and was one of the countries signatory to the Convention concluded at the Conference.
{ See Annexe III for Statement of Delegation ).
15. In 1912, the new Opium factory was commenced and the machinery erected, and in April 1912, (commencement of Buddhist year 2456) opium was retailed in tubes in the city of Bangkok. There was considerable prejudice, to begin with. against the new method of packing; for this reason the sale of opium in this form was confined to Bangkok for the first year. But in B. E. 2457 (1914-15) opium in tubes was supplied to all the inner Provinces and in B. E. 2458 (1915-16) throughout the kingdom.
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16. During this transitory period, opium was still sold through sub-Farmers, the person undertaking to dispose of the largest quantity in any district being appointed sub-Farmer. As, however, this method was inconsistent
with the policy of reducing consumption, the system was adopted. from B. E. 2458 (1915-16), of fixing the quantity of opium to be sold in each district, and of appointing as sub-Farmer, the person bidding the highest sum for the sale of the assessed quantity. It was intended to decrease the assessment year by year, but the quantities fixed were necessarily not always correct and in conformity with the real consumption, and towards the end of B. E. 2460 (1917-18) this method was altogether upset by outside causes, as explained below.
17. At the second Conference at the Hague Siam deposited her ratifica tion of the Convention of 19 12.
18. In the meantime, negotiations between Great Britain and China. had resulted in the former agreeing to lessen the production of raw opium in British India in consonance with the measure taken by China to reduce the cultivation of the opium poppy. A given number of chests of opium were, accordingly, "certified for import into China, and it was declared that the
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namber of certified chests would be decreased by 10% annually, so that at the end of 10 years, the import of raw opium into China from India would cease. China, on her part, took vigorous measures to suppress the cultivation of the opium poppy within her borders, and in 1912 she declared that it had been entirely stopped. Consequent upon a report from the British Opium Comatis- sioner confirming this declaration, the Government of India. in 1913, ceased to put up for auction any further number of "certified" chests, and raw Indian opium could thenceforth only enter China as illicit opium.
19. The stocks of Indian opium in China naturally began to get exhausted, and an increasing demand, at high prices, arose for opium from other countries. The drug as prepared by this Government for sale, is of a high quality, and the sub Farmers could not resist the temptation of increasing their profits by surreptitiously disposing of some of their assessed quantity (see para 16.) for export to China. The natural consequence was that the
balance available for sale in this country was insufficient, and as it would have caused great hardship to persons addicted to the drug to be deprived of their usual dose, the Government was compelled to increase the fixed quantities, The opium exported to China was, of course, smuggled out, and it is hardly necessary to say that the detection of outward smuggling is as difficult as that of opium being smuggled in The Government fully realised its obligation under the Hague Convention and did its best to stop the practice- The old opium Laws, however, made no provision for the prohibition of export of Government opium, and convictions in the Courts could not be obtained. Nevertheless, many cases of exports were detected and stopped by the Customs authorities. (See table II. Annexe IV.)
20. In the meantime, although the European War had necessarily caused opium to cease to figure as an international question, the Government had not been idle in pursuing its policy of gradual suppression, and had taken the next step indicated, viz., that of discontinuing the farming system of sale entirely. The new arrangement came into operation in B. E. 2461 (1918-19 ), when the sub-Farmers ceased to exist--their places being taken by the Revenue Officials
in every Amphur ( District Officer), and increases in staff being made where necessary. This additional staff, covering the whole kingdom, involved &
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