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Enclosure 3
·
No.1062 F.E.
Government of India.
Finance Department
Simla, the 10th November 1916.
•
405
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From
The Honourable Mr. H.F.Howard, C.I.E., 1.0.8., Offg. Secretary to the Government of India,
Το
Bir.
The Honourable the Colonial Secretary, Hongkong.
I am directed to acknowledge the receipt of your letter No.2422/1916, dated the 22nd September 1916, suggesting that in future all shipmentsof opium eastwards from India should be con- signed to the British Consular representative at the port of destination under heavy penalty inthe event of non-arrival.
2.
In reply I am to observe that in order to prevent muggling into China or other eastern countries, the Government of India have limited the amount of opium offered at their auction sales to the quantity which was found to represent the normal legitimate requirements of the trade with countries in
the east, and they are of opinion that in doing so, at a considerable sacrifice of Indian revenue, they have taken all
the action which they can reasonably be expected to initiate
for the prevention of illicit traffic. In paragraph 2 of my letter No.903-FI., dated the 16th August 1916, they offered
further co-operation in the prevention of smuggling into Hongkong from India; but they now understand that no smuggling
into Hongkong is found to exist, and that your Government does
not desire to proceed further withthe suggestions put forward
in my letter. In the circumstances, I am to say that, having
received no representations from other Governments on the subjed