484

PUBLIC RECORD OFFICE

NIITT

Reference :-

C.O.

882/10

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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OPIUM

MEMORANDUM

FURNISHED BY THE

COURT OF DIRECTORS OF THE BRITISH NORTH BORNEO COMPANY,

EMBODYING THEIR VIEWS UPON THE MEASURES SUGGESTED BY THE LEAGUE OF NATIONS ADVISORY COMMITTEE ON TRAFFIC IN OPIUM

FOR THE MORE EFfective application of Chapter II. OF THE INTERNATIONAL OPIUM CONVENTION, 1912.

1. In conformity with a request made by the Secretary of State for the Colonies, the Court of Directors of the British North Borneo (Chartered) Company in October, 1923, issued instructions to the Governor of North Borneo that he should give the fullest possible consideration to the suggestions of the Advisory Com- mittee of the League of Nations on Traffic in Opium with a view to determining what further measures can be taken to give a more effective application to Chapter II of the International Opium Convention, 1912.

2. The Secretary of State indicated that the Governor would probably find it convenient to appoint a local Committee to assist him in examining the existing position and to explore the possibilities of further effective action, and added the suggestion that one or more prominent Chinese should be invited to serve on any committee which it might be decided to appoint.

3. After careful consideration of the conditions obtaining in North Borneo the Court reached the conclusion that the appointment of a local Committee was probably not the surest way of giving full effect to the intentions of the Advisory Committee, and they nominated Mr. F. W. Fraser, C.B.E., Government Secretary, as their sole Commissioner with instructions to associate with himself in his enquiries prominent members of the planting, industrial, and Chinese communities and to report to the Governor the information and suggestions thus collected.

4. After a careful study of Mr. Fraser's report the Court have reached the following conclusions as regards the application to North Borneo of the suggestions of the Advisory Committee:-

(I) That the farm system, where it is still in operation, should be abolished and that the opium business should be made a Government monopoly and kept entirely in the hands of the Government,

The farm system has long since been abolished and the opium business is a Government monopoly and is kept entirely in the hands of the Government.

(11) As a corollary of paragraph (I), that the retail sale of prepared opium should be made only from Government shops, and that all private shops should be abolished. Persons in charge of Government shops should be paid a fixed salary without commission on the amount of business done, and therefore would have no temptation to push the sales. Mr. Fraser's report suggests that the system proposed could without undue inconvenience and expense be applied to the larger settlements, and as regards European-owned Estates a working arrangement might be arrived at which would conform to the spirit of the proposal. Although the system could not be applied to the smaller and more scattered settlements, it could be organised to cover approximately 4/5ths of the consumption. Mr. Fraser, whose views on this sug- gestion are shared by the Chinese, submits that the scheme is by no means free from objection and that the measure of its success would depend very largely on the class of man employed as Government retailer. As compared with the great neighbouring Colonies the total consumption of opium in North Borneo is small, and there would be serious difficulty in obtaining honest and reliable Chinese

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retailers at a salary commensurate with the scale of the traffic. It is admitted that a salesman on a fixed salary would have no incentive to push sales, but he would have every temptation to supplement his salary by illicit methods which easily suggest themselves, and which might well defeat the objects of the proposal. The Chinese consulted by Mr. Fraser, both smokers and non-smokers, were practically unani- mous in the opinion that the introduction of this proposal would have no material effect on the consumption of opium.

In view of the above considerations the Court, while unable to agree to the adoption of (II) of the suggestions of the Advisory Committee in its entirety, would be prepared to fall in with the proposal in so far as the local conditions of North Borneo permit, having due regard to the fulfilment of the object aimed at and the practicability of carrying that object into effect.

(III) That a uniform maximum limit should be fixed for the amount of pre- pared opium placed on sale for consumption, calculated according to the number of the adult Chinese male population, e.g., X_taels per 10,000 adult Chinese males in the territory, and that the annual imports of raw opium should be limited to the amount required for that rate of consumption.

The Court are prepared to accept the principle of this proposal, but it is not considered possible or desirable to apply the principle too meticulously to North Borneo. It is an admitted fact that certain clans of Chinese are heavier smokers than others, and it is considered that a sudden influx of Chinese belonging to clans who are notoriously heavy smokers might well result in a shortage of supplies, the effects of which would be serious. Any undue limitation of supplies would also be liable to lead to such abuses as boarding and profiteering, which would be diffi- cult to detect.

(IV) That the possibilities of the system of registration and licensing, which has already been introduced in some of the Far Eastern territories, should be thoroughly explored. Public opinion is in general strongly opposed to this proposal, which has been tried with indifferent success in Burmah, Java and elsewhere. Arguments against its adoption are many and valid. Prominent are the following:-

(a) General dislike of registration by Chinese. (b) The deterrent effect on immigration.

(c) Hardship on Chinese, especially of the poorer class who live at a distance from retailers. Registration would involve personal visits by these people to the nearest retailer.

(d) There is a considerable class of Chinese who, not being regular smokers, occasionally partake from social motives. In order to be in a position to return hospitality many of these would register as regular smokers, and from being casual smokers might become habitual smokers.

(e) The objection of the police authorities who recognise in the proposal a broad and easy road towards corrupt practices on the part of an Asiatic police force.

() Many non-smokers would register purely in order to obtain the drug

which they would retail at a large profit.

In view of the particular conditions obtaining in North Borneo as outlined in the above considerations (a) to (f) and of the negative results of registration and licensing secured in Burmah, Java and elsewhere, the Court are not prepared at the present juncture to do more than watch the results of registration in neighbour- ing territories with a view to its possible ultimate adoption in North Borneo.

(V) That the possibility should be considered of making uniform, so far as

circumstances permit :-

(a) the price at whick prepared opium is retailed in the different

territories, and

(b) the penalties for infraction of the law in regard to the import,

export, sale and use of prepared opium.

It has hitherto been the practice to fix the retail price of opium in North Borneo in consultation with the authorities in Labuan and Bruner. These prices have always been lower than those obtaining in the Straits Settlements and Federated Malay States. In raising prices to a higher level regard must be had to conditions in other neighbouring States, otherwise smuggling and other abuses would inevitably result. Subject to these considerations the Court are in general in agreement with the proposal to secure uniformity.

VI.

VII.

The Court concur in these proposals.

traffic. It is admitted that push sales, but he would have nds which easily suggest the proposal. The Chinese were practically unani- would have no material

hile unable to agree to the ittee in its entirety, would local conditions of North the object aimed at and the

for the amount of pre-

calculated according to e.g., X_taels per and that the annual to the amount required for

this proposal, but it is not too meticulously to North Chletes are heavier amokers

of Chinese belonging to in a shortage of supplies, tion of supplies would also which would be diffi-

and licensing, which Far Eastern territories,

proposal, which has been elsewhere. Arguments the following:--

class who live at a distance personal visits by these

not being regular smokers, In order to be in a position as regular smokers, habitual smokers.

in the proposal a on the part of an

to obtain the drug

orth Borneo as outlined results of registration and are not prepared at registration in neighbour-

in North Borneo.

uniform, so far as

retailed in the different

in regard to the import,

of opium in North Brunei. These prices Straits Settlements and level regard must be had ing and other abuses Court are in general

484

PUBLIC RECORD OFFICE

Reference :-

ICO.

882

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH--NOT TO

PUBLIC

RECORD OFFICE, LONDON |

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