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PUBLIC RECORD OFFICE
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C.O. 882/11
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
C. 73017/30 (No. 10].
No. 195.
STRAITS SETTLEMENTS.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 9.15 a.m., 27th February, 1930.) TELEGRAM.
Persian
27TH FEBRUARY. Confidential. Your telegram 12th February.* Opium Monopoly. Representative has not yet visited Singapore.
As at present advised am not desirous of appointing any firm as sole buying agent nor do I see how such action could influence Persian Government's attitude. I do not apprehend that this Government would be embarrassed by an increase in the price of Persian opium in the near future for the following reasons (a) Malayan stocks (see my despatch 27th January, Confidential†) are such that we shall not be obliged to place further orders for Persian opium for a year at least, (b) Malaya as a principal absorber of Persian opium can hardly be ignored by those controlling Persian opium market, (c) Malaya can fall back on the Turkish market if necessary.
C. 73017/30 [No. 17].
No. 196.
INTERDEPARTMENTAL OPIUM COMMITTEE.
MINUTES OF THE 9TH MEETING DATED 12TH MARCH, 1930.
(Extract.)
3. SIR MALCOLM DELEVINGNE raised the question of the purchase of Persian opium by the Straits Settlements Government. He thought that the continuation of the present policy might have awkward results. There was a danger of the whole Persian export trade being absorbed by the two firms of Behbehani and Kazaroni. Apart from the fact that these firms were notoriously engaged in the illicit traffic with the Far East the establishment of a monopoly was bound to be followed by a raising of the price. On the other hand, if the Straits Settlements Government left the Persian and entered the Turkish market there might be unwelcome repercussions. Could not something be done to help the other firms in Persia, which were in danger of being squeezed out, to maintain their position? At present the Straits Settlements Govern- ment was buying from Behbehani and Kazaroni, a somewhat unpleasant position.
MR. PASKIN said that the substance of Messrs. Bellairs and Atkinson's recent letter renewing their proposal that they should be appointed sole buying agents had been telegraphed to the Straits Settlements Government, which had replied that it did not see how the appointment of a sole buying agent could influence the Persian Govern- ment nor did it apprehend that the Straits Settlements Government would be embar- rassed by a rise in price as (a) Malaya as the principal absorber of Persian opium would hardly be ignored by those controlling the Persian opium market, (b) Malayan stocks of opium were such that it would not be necessary to place further orders for a year at least, and (c) any event Malaya could fall back on the Turkish market.
SIR MALCOLM DELEVINGNE said that he had always been in favour of the employ- ment by the Colonial Governments of a buying agent who would work, if possible, in co-operation with the other purchasing countries, e.g., Siam and the Netherlands East Indies. MR. PASKIN recalled the fact that the matter had been discussed by the Governments of the Straits Settlements and the Netherlands East Indies and that it had been decided not to take any steps at present to buy opium jointly, but on this point it was agreed that the Home Government could (and it might be advisable for them to do so) reconsider the matter. After some discussion it was agreed that the recent despatches from Persia and the situation generally should be reviewed in the Home Office and the Colonial Office and a memorandum prepared in order that it might be considered, in all the circumstances and taking the long view, what arrange- ments were best calculated to safeguard the Straits Settlements Monopoly's position in regard to price, and to support the policy of the League and His Majesty's Government in the matter.
C. 73017/30 [No. 51].
No. 197.
STRAITS SETTLEMENTS.
THE SECRETARY OF STATE to THE GOVERNOR.
(Sent 7.30 p.m.,
23rd September, 1930.)
TELEGRAM.
[Answered by Nos. 198 and 199.]
PERSONAL and Confidential. Following from Grindle in Wilson's absence. Begins-As you know, the possibility of Straits Settlements Government purchasing its opium through a sole agent has been considered at various times. The latest correspondence on the subject ended with your telegram of the 27th February, Confidential.*
Department of Overseas Trade now inform us that a new factor, independent of the general opium question, has arisen which bears on this. The Persian Government have enacted regulations governing the purchase of foreign exchange which it is impracticable to induce them to rescind. These have, in fact, paralysed British import trade into that country. New business in British textiles cannot be undertaken, nor can old debts be paid, unless British firms can command valuta obtained from the sale of Persian products, of which opium alone is economically important. Under existing conditions illicit opium ring uses such exchange to purchase goods from Russia instead of from United Kingdom with the result that Zieglers, the oldest British merchant firm in Persia, will shortly have to close down.
But they contend and we are inclined to agree that this contingency could be avoided if they and their associates Bellairs Atkinson were given a promise that a substantial proportion of future supplies of opium from the Straits Settle- ments would be obtained through them, and if some indication could be made of the date when next order can be placed. An immediate purchase of part of anticipated requirements would be most valuable. The knowledge that such a regular connexion had been established would enable the British group to main- tain their connexion with the various small suppliers upon whom they rely, and to circumvent activities of the illicit dealers. continued existence in Persia of Zieglers (who really are British in spite of their It provides the last hope for the name) which is important politically as well as commercially.
We and other Departments here fully realize the complexity of the position and your difficulties, but in the interests of British trade and in these interests alone we frankly make an appeal to you in the hope of obtaining some assurance for the British group that some arrangement will be made which will give them permanent standing for a definite period, say, at least one year.
We do not wish to press the matter from the point of view of the general opium policy, but as you are aware for some time prior to the recent cessation of purchases by your Government all supplies were in fact obtained by the successful tenderers from a group of Persian dealers, who there is every reason to believe are engaged in the illicit traffic, and it may be of interest to you in arriving at a decision to learn that all information received here points to this group making renewed efforts to secure monopoly which might result in rise of prices. We are a little doubtful whether Turkish supplies would be readily obtainable as an alternative supply.
Department of Overseas Trade feel strongly that such a gesture on your part, especially if accompanied by a small order, would still further strengthen the admirable reputation of Straits Government in trading circles here who have their backs to the wall; and, so far as we can see, it would cost little but purchase much.-Ends.-PASSFIELD.
* No. 193.
+ No. 194.
* No. 195.
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