S.0.377.

Home Office,

Whitehall,

S.W.1.

66.

50

30th August, 1927.

My dear Paskin,

Many thanks for your letter of yesterday (30049/27) about

Mà cao. By all means let us discuss it with the Foreign Office

and the India Office if you think it desirable, but there are two

reasons at least that seem to me to make Clementi's proposal impossible.

the In the first place there is the statement in his telegram that 120

Zaty D chests of Indian opium are additional to the 420 chests of Persian

opium. In other words the annual requirements of Macao under the

new regime are chests. In his despatch of the 22nd July,

Clementi himself says that thesuppa Mesitha 120 chests a year should

be sufficient for Macao needs. (It rather looks as if the Governor

of Macao had succeeded in hoodwinking Clementi). The second reason

is that the supply of Indian opium to Macao is not going to enable

the Governor of Macao, as Clementi seems to think, to control the

consumption of opium in Macao any more than the Government of Hong Kong

has been able to control the consumption of opium in that Colony.

Clementi's assumption that consumption is being controlled in Hong Kong

and could be effectively controlled in Macao is rather astonishing in

the light of the history of the last few years. The only purpose of supplying the Indian opium to Macao would be to keep up the Government

revenues of Macao by enabling that Government to hold its own in the

opium business against the purveyors of the smugled article.

could the British Government possibly justify such action?

Perhaps we could have the talk this afternoon, as our

Conference about the Straits Settlements ought not to take very

How

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