It seems surprising that Sir C.Clementi believes it

possible that any such representations could have any

effect, seeing that in our telegram of the 30th June

(No.41.) we told him that "You are of course aware

of the decision of the Indian Government not to

supply any more opium for Macao.

There can be no

question of India making good to your Government the

opium transferred to Macao or supplying opium to

Macao for the purpose of repaying loan or for

carrying on their monopoly."

Further, the Governor of Hong Kong seems

totally to have misunderstood the nature of the

decision of the Government of India, which is that the

total exports from India to all consuming Governments

is subject to the 10 per cent. annual reduction.

If this decision is maintained (and there seems no likelihood whatever of it not being maintained),

supplies to Macao could only be permitted by reducing

pro tanto the supplies to the other Far Eastern

Governments.

In these circumstances, the certain

prospect of another shortage at the end of this month

opens rather alarming possibilities of the Governor of

Hong Kong attempting to carry the Macao opium

monopoly on his back almost indefinitely, and this can

clearly not be permitted. Apart from this aspect,

however, the main question is clearly for the Foreign

Office, the India Office, and Sir Malcolm Delevingne.

It is a matter of some urgency, but I have ascertained

that Sir Malcolm has not gone on leave as he had

hoped, and will be here for a few more days.

? Proceed as in d.d.h.

ہ

7. Pastin

16.8.27.

52.

2

F.O. 10/0.51)

17/9 4107854

53

20

Si M. Delevingne (H.D.)

އ

[~/o, 51 +52)

17 AUG 1927

20

2.0.

(w/c 51 +52) Lab in

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