215

PUBLIC

RECORD OFFICE

Reference -

1111C.O.882/12

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BF REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

No. 15.

28

Control of Dro88 .

In North Borneo smoking shops the dross is collected and the clerks in charge are bound to return at least 40 per cent. of dross for all opiumn smoked. The Govern- ment also pays $4.50 a tahil for dross from outside. Compulsory delivery of dross from those smoking at home on pain of refusal of future supplies would again drive the smoker to illicit supplies.

No. 16. Cure of Opium Smokers.

The past experience of the Federated Malay States in this matter shows that the mere opening of opium wards in hospitals is a pure waste of money. It would be better for so small a unit as North Borneo to wait until the research conducted in Malaya or the Dutch Indies is able to point the way to useful expenditure..

No. 17. Opium Revenue.

The Commission's suggestion invites the League of Nations to invade the dangerous ground of the fiscal autonomy of independent States. The North Borneo Government have accepted all the obligations of the Geneva Agreement, and have undertaken to suppress opium smoking within a given term of years as soon as the producing countries will co-operate. It is considered a matter for internal arrangement how the Territory is to face its fiscal future. These questions of budget provision, &c., are considered to be side-issues to the main point, which is that as soon as production is curtailed the rest will automatically follow.

any

No. 18. League of Nations Central Bureau in the Far East for Opium Smoking Affairs.

The Government of North Borneo consider that such a Bureau would not serve

and that it would be more likely to create friction than to facilitate. useful

purpose; co-operation between Governments. The Opium Monopolies already co-operate with each other, especially in preventive work, and any additional exchange of views on the already well-worn suoject of opium smoking would be better arranged direct or organized at longer intervals by the opium section of the Geneva Secretariat, as at present.

No. 19. Annual Reports to the League of Nations.

Doubtless North Borneo would follow anything which the Malayan Governments might agree to in this connexion.

No. 20. Revision of The Hague International Opium Convention and the Geneva Opium Agreement.

No additional comment is necessary except to point out that conditions in North Borneo make the expense of complying with the proposed alteration in Article I, 3. unreasonable, and the resultant control less effective than distribution by employers of labour.

(6) In conclusion it is desired to emphasize once more that the Commission's proposals in regard to price represent a vital change of policy, i.e., the abandonment The reduction in of all real control in an effort to make smuggling unprofitable. price would have to be very drastic to effect this purpose, and could not be combined with rationing without defeating its object. The increase in sales of Government opium would not only cover present licit and illicit consumption, but would inevitably cause new consumption. The present system of a high price and an elaborate pre- ventive organization discourages the spread of the habit and probably causes some diminution while providing efficient machinery for total suppression in the early future as soon as production is brought under control. Whether the price be high or low, however, there is much to be said in favour of a parity price to be fixed by agree- ment between all Far Eastern Territories concerned.

9th June, 1931.

C. 83014/31 [No. 60].

(No. 18.)

29

No. 21.

BORNEO (SARAWAK).

THE BRITISH AGENT to THE SECRETARY OF STATE.

(Received 22nd June, 1931.)

MY LORD,

Government House, Singapore, 28th May, 1931. WITH reference to Your Lordship's Straits Settlements telegram of the 11th March, paragraph 11 of my Straits Settlements despatch Confidential (2) of the 15th May,† Your Lordship's Borneo (Sarawak) Miscellaneous despatch of the 25th February and my telegram No. 5 of the 21st May,§ I have the honour to enclose copy of a letter from the Acting Chief Secretary, Sarawak, giving the views of the Sarawak Government on the Report of the League of Nations Commission of Inquiry into the Control of Opium Smoking in the Far East, and reporting that the Sarawak Government does not desire to send a representative to attend the Conference at Bangkok.

SIR,

(Confidential.)

I have, &c.,

JOHN SCOTT,

British Agent for North Borneo and Sarawak.

Enclosure in No. 21

Chief Secretary's Office, Sarawak, 15th May, 1931.

WITH reference to your letter dated 2nd April, 1931, enclosing a copy of the Secretary's of State's telegram of 11th March, 1931, and to the telegram despatched by me on the 11th May in reply to your telegram of 9th May, on the subject of the International Conference on Opium Smoking, have the honour to inform you that Volume I of the Report of the Commission of Inquiry into the Control of Opium Smoking in the Far East has been read with great interest. A knowledge of the prac- tice and control of the sale of opium in other countries in the East will undoubtedly prove of considerable value to this Government.

2. It has already been intimated (vide my letter dated 4th May, 1931), that this Government does not desire to send a representative to attend the International Con- ference on Opium Smoking which is to be held at Bangkok in November.

3. Regarding the question of any possible reduction in the price of opium, I have to inform you that the selling price of Sarawak opium has recently been raised in order to bring it into line with the price obtaining in neighbouring States, and it is considered that the recommendation of the Commission to reduce the price of Government opium to a figure sufficiently low to render smuggling unprofitable can only be brought about by the co-operation of all neighbouring Governments concerned. Owing to the present economic situation, it seems unlikely that any such co-operation will be achieved for some time to come, owing to the large loss of revenue which would result. It is assumed, of course, that any recommendation to reduce the selling price of opium would come from the large consuming countries.

4. It is considered that this proposed reduction in the price of opium is hardly compatible with the recommendation of the Commission that this drug should be regarded as a luxury.

5. With reference to the question of opium revenue referred to by the Secretary of State, in theory the Government of Sarawak is in favour of treating this revenue

course:

in the manner suggested by the Commission, should circumstances permit such a At the present time, however, and presumably for some time to come, the financial position of this country renders such action impossible.

6. În 1930 the revenue from opium was 11.75 per cent. of the total revenue of the State, compared with 17.86 per cent. in 1925, and 13.9 per cent. in 1929.

* No. 3.

† No. 19.

† C. 83014/31 [No. 12]: not printed. § C. 83014/31 [No. 46]; not printed.

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