5

(7) The

new

are

prices

that is probably late in 1930, by which time we may

expect to be in the throes of the International

Conference which will be held after the

Commission has made its report. I do not

think, therefore, that we need very much fear

Geneva. Sir Malcolm Delevingne himself may

object but on the whole he has been much more

reasonable in the last few months.

(4) It is obvious that in any case

Hong Kong will have to start using Persian instead

of Indian Opium within a year or two. There

might be a certain amount of difficulty in getting people accustomed to the new kind of Opium and probably the sooner they start the

change the better.

(5) The Persian monopoly is not yet

effective in the sense that direct sales by the

Persian Goverment to the consuming Governments

have been arranged, but it may become so in the

future. In that case it might be useful for

Hong Kong to have as it were a certain claim

on the Persian market, otherwise they might be

left out completely.

(6) Although, as stated above, we have

only promised to let Hong Kong have Persian

Opium to make up its total supplies to the

parity at least an 1927 standard, the fact that the total import s attempt to meer

the

would not exceed those of that year would make

necessity of selling boil it much easier to defend ourselves at Geneva.

maian &

Pession, nor

a reduction

merely all-round. It is reasonable to change less

for Persian.

А

The arguments on each side are

fairly evenly balanced as, although the real

advantages lie wholly on the side of the

Governor's proposal, any opposition could make

great play with the undesirability of

reconsidering a Cabinet decision so soon

especially

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