239
B. Details of Seizures.
701
PUBLIC RECORD OFFICE
Reference :-
EPERFIC.O.882/11
PUBLIC RECORD OFFICE, LONDON
|BE REPRODUCED PHOTOGRAPHIC- ALLY WITHOUT PERMISSION OF THE
COPYRIGHT PHOTOGRAPH-NOT TO
A.
Raw Opium.
Prepared Opium.
Totals.
Revenue from
Proportion of
Opium.
Total Revenue.
Chinese.
Other.
Chinese.
Other.
Chinese.
Other.
Year.
$
Per cent.
Straits Settlements
12,872,968
34
Federated Malay States
14,027,352
13.4
Johore
4,944,968
27
Kedah and Perlis...
2,766,476
28
Kelantan
297,037
12.1
...
Trengganu
$15,019
21.4
Brunei
83,304
20.7
1918 1919
66
2
1920
B. OPIUM REVENUE RESERVE FUNDS IN MALAYA.
Reserve Fund.
Opium.
Revenue, 1929. Amount.
Contribu- tion, 1929.
1926 1927
1928
40,277 1,558 61 19,178 44 6,088 280 23,143 31 8,828 38 13,441 247 100,911 231 9,078 1921 272 102,960 16 31,404 365 22,537 1,212 10,635 637 1922 145 15,347 34 41,967 572 4,040 635 14,149 717 1923 240 38,146 28 246,067 962 8,362 638 7,992 1,202 1924 232 19,018 8 10,013 1,623 21,406 828 11,726 1,855 1925 189 15,548 18 1,023 1,888 35,679 785 177 15,086 10 5,526 1,680 28,302 464 174 20,745 5 3,718 1,989 20,307 156
286 31,723
352
72,000
46 7,646 341
42,321
278 109,739 269
22,519
125,497 1,228
42,039
19,387 669
56,116
46,508 666 254,059
40,424 836
10,732 2,077
11,294 1,857
$
Straits Settlements, 31st December, 1928...
12,250,000
42,500,000
Federated Malay States, 31st December,
1928
Johore, 31st December, 1928 Kedah, 18th June, 1928 Trengganu, 18th June, 1928 Kelantan, 31st December, 1928 Brunei, 31st December, 1928
C. SeizureS OF OPIUM IN Straits SetTLEMENTS.
13,000,000
18,200,000
1,950,000
3,250,000
9,250,000
1,000,000
2,000,000
4,225,500
300,000
340,000
165,000
90,000
16,916 3 3,780 299 19,335 253 8,419 455 38,251 256 12,199
(VI) PAPERS (1925-1931) RELATING TO THE ESTABLISHMENT OF THE OPIUM REVENUE REPLACEMENT RESERVE FUNDS IN MALAYA.
93 4,151 2,163
51,227 803 43,388 474 41,052 98
21,739 11,755
16,820
7,869
600,000
8551/25.
75,000
46,000
16,000
"
Raw.
Prepared.
Total.
Tahils.
Tahils.
Tahils.
1918
52,811
15,028
67,839
1919
15,219
8,419
23,638
1920
12,154
5,087
17,241
1921
4,462
6,723
11,185
1922
5,398
3,732
9,130
1923
6,887
29,438
36,325
1924
12,613
90,539
103,152
1925
36,656
-275,089
311,745
1926
18,602
170,014
188,616
1927
6,200
183,115
189,315
1928
14,900
83,200
98,100
(January-October)
Notes.
(1) Seizures are occasionally made in the Malay States, but they are negligible
in quantity.
(2) Although exact figures are not available, all but a very small percentage of the opium seized is of Chinese origin.
D. SEIZURES OF OPIUM IN HONG KONG.
A. Total Seizures.
No.
Taels.
1918
352
72,000
1919
387
49,967
1920
547
132,258
1921
1,865
167,536
1922
1,386
75,503
1923
1,868
300,567
1924
2,691
62,163
1925
2,880
62,982
1926
2,331
60,208
i
1927
2,261
48,921
1928
711
48,450
No. 211.
STRAITS SETTLEMENTS.
THE SECRETARY OF STATE to THE GOVERNOK. [Answered by No. 212.]
Downing Street, 24th March, 1925. WITH reference to my despatch No. 110 of to-day's date,* I have the honour to address you on the subject of the revenues derived by the Governments of the Straits Settlements and the protected Malay States, from the sale of prepared opium.
2. You are aware that it has been alleged that the real obstacle to progress towards the ultimate total suppression of the use of prepared opium contemplated by Article 6 of the International Opium Convention, 1912, lies in the vested interests of the Governments concerned, which derive varying, but in some instances very large, proportions of their revenues from the sale of the drug; and that, moreover, criticisms of this nature have been directed particularly against the Government of the Straits Settlements, which derives nearly half of its total revenue from this source. 3. You will have judged, from the lengthy telegraphic correspondence which you have had with my predecessor and myself, commencing with Mr. Thomas's telegram of the 27th of Junet and ending with your telegram of the 6th of January, that the difficulty of meeting these criticisms in such a manner as to carry conviction in such an assembly as the recent Opium Conference at Geneva, has been the subject
of prolonged and anxious consideration by His Majesty's Government.
4.
As an indication of the persistence with which these accusations have been pressed, I may mention that although Sir Malcolm Delevingne stated emphatically at the First Opium Conference on the 16th of November that as regards the British Colonies, His Majesty's Government would not be deterred by any financial considera- tions from carrying out its obligations under The Hague Convention, by adopting further repressive measures when practicable. the following passage occurred in the Appeal to my Colleagues "which was communicated by Bishop Brent to the Second Conference, on his departure from Geneva at the beginning of December :-
It has been frequently contended that the matter of revenue is unimportant and in one instance during this Conference I was charged with being ungenerous in referring to vested interests. Such protestations are empty as long as the fact abides that revenues, whether large or small. are received and not immediately expended on the prevention and treatment of addicts or such other measures as will put into effect the provisions of Chapter II."
(Confidential.)
ŠIB,
* No. 77.
† No. 23.
‡ No. 69.
1
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PUBLIC RECORD OFFICE
Reference :-
TPEPIC.O. 882/11
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
قسم
240
5. His Majesty's Government are satisfied that at present the smuggling of opium from China and other countries in which the growth of the opium poppy is not only unrestricted but (in many cases) encouraged by the authorities concerned, constitutes a serious obstacle to the enforcement of effective measures for the suppression of the use of prepared opium and renders it impossible to assign a definite period within which the complete suppression of the use of prepared opium in the British Far Eastern Colonies and Protectorates can be effected; and they have recognized the force of your contention that the various suggestions which have been put forward (such as the progressive dissociation of the opium revenues from general revenues, and their expen- diture on humanitarian and social services outside the normal scope of Government activities leading to their complete extinction as a source of revenue for carrying on the normal functions of Government, within a definite period of years) would involve the imposition of such heavy additional taxation (and possibly the disorganization of the public services) that, if such a policy were embarked upon prematurely grave dis- content and possibly serious political difficulties would be created, without any corre- sponding gain by way of a diminution in the consumption of prepared opium.
6. Nevertheless, His Majesty's Government have been much concerned to learn from your telegrams of the serious disorganization of the finances of the Colony and the Malay States which would be caused by the cessation of the opium revenues even if spread progressively over a period of ten years.
7. In fact it would not appear to be putting it too high to state that if other reasons (which in the circumstances are admittedly sufficiently cogent) did not exist, it would be necessary for the Malayan Governments to urge the difficulties of replacing the opium revenues, as the sole reason for delaying the final effective application of Article 6 of The Hague Convention. I do not wish it to be understood that I am implying that such a claim would in all circumstances necessarily be unreasonable. In fact, the necessity of allowing sufficient time for the reorganization of the finances of the Governments concerned, was, recognised by His Majesty's Government in prescribing the period of 15 years as the period within which the total suppression of the practice of opium smoking should be effected when circumstances outside the control of the Governments of the British Far Eastern Colonies and Protectorates render it possible to embark on measures which will produce this result.
8. On the other hand, such a claim would be difficult to defend, unless it could be shown that definite steps had been taken by the Governments concerned to place themselves in such a position financially, that they would be able to meet the situation which must inevitably arise when it becomes possible to give full effect to the obliga- tions assumed under The Hague Convention. It seems to me, therefore, to be a matter for adverse comment that the Malayan Governments have not given more serious con- sideration, than they appear to have done, to the problem of devising and building up alternative sources of revenue, and I consider that the matter should be taken in hand without further delay.
9. I am aware that, so far as can be foreseen at present, there is little prospect of the conditions which are to determine the beginning of the period of 15 years, being realised for some time to come, and it may possibly be argued that the necessity for raising additional revenue will only arise as and when the opium revenue begins to diminish, when the necessity will be clear to all.
10. Nevertheless, it must be remembered that the obligation to take all practical steps towards the gradual suppression of the use of prepared opium remains in full force and effect, quite apart from the new obligation recorded in the Protocol, and I consider that it would be imprudent (to put it no higher) to defer the creation of alternative sources of revenue until the beginning of that period. If a beginning is made now, the process will be more gradual and the consequent dislocation of the finances of the various Governments correspondingly less.
11. I feel confident that, on reviewing the position in the light of this despatch. you will agree with me that something more is required than the somewhat academic inquiry suggested in your telegram of the 6th of January. The minimum to be aimed at, in my opinion, should be the reorganization of the finances of the Malayan Governments on the basis of endeavouring to make them independent of the opium revenues in (say) a period of 20 years. I realize that in the period before the opium revenues begin to show any appreciable diminution, this policy would result in the accumulation of an annually increasing surplus. In view, however, of the very large proportions of revenue which are drawn by certain of the Malayan Governments from the sale of opium and which will eventually have to be replaced, it is a matter for
* No. 69.
241
serious consideration whether it would not be desirable to build up a fund, the income from which would go far towards mitigating the severity of the situation which will arise when a rapidly disappearing opium revenue makes the exploitation of alternative sources of income imperative.
12.
I should be glad if, after consulting your advisers, and if necessary the Unofficial Members of the Legislative Council in the Colony and possibly also the Rulers of the Malay States, you will furnish me with a full expression of your views on this matter together with your recommendation as to the action which should be taken.
I have, &c.,
41976/25.
No. 212.
W. G. ORMSBY GORE
(for the Secretary of State).
STRAITS SETTLEMENTS. FEDERATED MALAY STATES.
UNFEDERATED MALAY STATES.
THE OFFICER ADMINISTERING THE GOVERNMENT to THE SECRETARY OF
(Confidential.)
STATE.
(Received 5th September, 1925.)
SIR,
Government House, Singapore, 20th August, 1925. WITH reference to your Confidential despatch of the 24th March, 1925,* on the subject of the revenues derived by the Governments of the Straits Settlements and the protected Malay States from the sale of prepared opium, I have the honour to inform you of the steps which have been taken in the various administrations under my charge.
2. In the Straits Settlements I asked the Unofficial Members of Legislative Council to nominate a small committee under the chairmanship of the Financial Adviser, and I enclose a copy of its report. I concur with the recommendations made in this report, and I propose to ask the Legislative Council to sanction the necessary financial arrangements at a meeting to be held on the 24th August.
3. In the Federated Malay States a meeting was held of both official and un- official members of the Federal Council, presided over by the Chief Secretary, and I enclose a copy of the notes of the meeting. The Financial Adviser considers that the investment of the funds should be strictly limited to gilt-edged securities, and. that the recommendations at the meeting should be accepted subject to that qualifica- tion. I concur with the Financial Adviser's view. I could have wished that the proposals put forward by the Federated Malay States had been on a more generolis scale, but having regard to the present state of their finances I think this provision may be accepted, at any rate, for the present.
4. The Advisers in the Unfederated States were also asked to consider the matter and the following are the results :-
(a) The Government of Johore is prepared to set aside $4,000,000 out of surplus funds, and to provide annually a sum of $1,250,000 to form a replacement fund. This is estimated to be sufficient to render the State independent of opium revenue at the end of 20 years on the assumption that no reduction is made in such revenue within the next 5 years. A copy of the General Adviser's proposals is annexed.
(b) Kedah has put forward a proposal to set aside $3,000,000, but I am not satisfied that this is all that can be done in that State, and am making further inquiries.
(c) The British Adviser reports that the Government of Kelantan is unable to put forward any proposals until the Duff Development Company's case is settled, and I am of opinion that in the circumstances it should not be pressed to do so.
(d) The British Adviser, Trengganu, proposes to set aside any sum received in excess of its present annual revenue of $250,000 from opium towards a replacement fund, and considers that this, with the normal development
* No. 211.