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1981 PREORD OFFICE

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PUBLIC RECORD OFFICE, LONDON,

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statement that "the-policy of attempting to limit the demand for opium and suppress the illicit traffic by high prices for Government opium has had the effect of making It might be pointed out with. smuggling very profitable and has proved a failure." * reference to this statement that the Ekstrand Committee had in view only the conditions in the Far East and that in India the policy in question has been followed with a large measure of success.

In all other respects the Secretary of State regards the observations of the Govern- ment of India as suitable to form the basis of Mr. Marshall's brief.

C. 83035/31 [No. 35].

No. 26.

I am, &c.,

E. J. TURNER.

FOREIGN OFFICE to SIR M. DELEVINGNE.

(Copy received in Colonial Office, 2nd October, 1931.)

SIR,

Foreign Office, S.W.1, 29th September, 1931. I HAVE to request that you will be guided by the following instructions while acting in the capacity of Delegate of His Majesty's Government in the United Kingdom at the forthcoming Conference at Bangkok, which has been convened by the League of Nations in accordance with Article 12 of the Geneva Opium Agreement in 1925.

2. The purpose of the Conference is, as indicated in Article 12, to review the position in regard to the application of Chapter II of The Hague Convention of 1912 and of the Geneva Agreement. The deliberations of the Conference will necessarily centre to a large extent round the Report of the League of Nations Commission of Inquiry into the Control of Opium Smoking in the Far East and the recommendations submitted in that Report, but the Conference is not to be regarded as restricted to the consideration of the questions raised by the Commission.

3. The position of His Majesty's Government, in general, is that they adhere wholeheartedly to the undertakings entered into by this country in Chapters II and IV of The Hague Convention and in the Protocol to the Geneva Agreement of 1925, and will co-operate to the utmost of their power in any measures which are calculated to facilitate the objects which those undertakings have in view.

4. His Majesty's Government find themselves in general agreement with the conclusions reached by the League's Commission of Inquiry and subject to certain exceptions mentioned below concur in the further measures proposed by the Com- mission for the control and restriction of opium-smoking, and desire that you should endeavour, as far as practicable, to secure their adoption by the Conference

5. The key to the solution of the question of the suppression of opium smoking continues to be, as it was at the time of the Geneva Conference in 1924-1925, the position in China in regard to the production, distribution, and use of raw opium. China was not a Party either to the Agreement and Protocol of 11th February, 1925, or to the Convention and Protocol of 19th February, 1925: and at the present time, according to the reports received by His Majesty's Government, while the policy of the Republic is still nominally complete prohibition of the production, use and distribution of opium, opium is being produced and used on an enormous scale and large quanities are sent out of the country to neighbouring counrties, including His Majesty's Possessions in the Far East. As long as that condition of things continues, it is impossible for His Majesty's Government to put into force the Protocol of 11th February, 1925, or to adopt successful measures for the suppression of opium smoking in His Majesty's Far Eastern Possessions in accordance with Chapter II of The Hague Convention.

6. The inquiry of the League's Commission unfortunately could not, in face of the refusal of the Chinese Government to co-operate, be extended to an examination of the situation in China; but the facts are sufficiently established, and the character of the situation is now being admitted by the supporters in China of the anti-opium policy and in the Chinese Press. The Chinese Government have been invited by the Council of the League to send a delegate to take part in the Conference at Bangkok, and if the invitation is accepted, it is desirable that there should be a friendly but perfectly frank discussion of the situation. While not minimizing in any way the seriousness of the known facts relating to the production of opium in China (and in this connexion you may in your discretion make use of information out of the reports

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received from His Majesty's officers in China) and while insisting on the grave diffi- culties caused to His Majesty's Government in Far Eastern Possessions by the smuggling into them of Chinese opium, you will express the sincere desire of His Majesty's Government to co-operate in every possible way with the Chinese authorities in bringing about an improvement in the present situation and to consider sympathetically any practical proposals that are brought forward in the Conference either by the Chinese delegate or by other delegates.

7. While the question of the restriction of the world production of raw opium lies outside the scope of the Conference it is possible reference may be made to the recommendations on this subject which are contained in the Commission's Report. In that case you are authorized to state that His Majesty's Government would gladly see any practical steps taken towards that end, and see no objection to the question being raised by the League of Nations as suggested by the Commission, and would be prepared to co-operate in any way that may be open to them.

8. His Majesty's Government in the United Kingdom do not believe that the recommendation (No. 8) of the League of Nations Commission on the question of the reduction of the price of opium and their recommendation (No. 13) in favour of the suppression of smoking in private establishments are calculated to achieve the object in view, and the proposal should therefore not receive your support. On the other hand, the fixation of the price at which opium should be retailed is one which in their opinion must be determined by considerations of expediency, and they desire to remain free to reduce prices if that course should later on be found likely to conduce to a stricter control.

9. In regard to the recommendation (No. 11) that a system of licensing and rationing should be put into effect, and that licensing and rationing should be based on medical certification, His Majesty's Government in the United Kingdom consider that as long as ample supplies of smuggled opium are available, a system of rationing would only have the effect of driving consumers to the illicit traffic for their opium supplies. You should therefore not undertake in the present circumstances to arrange for the introduction of a complete system of licensing and rationing.

10 The recommendation of the Commission (No. 17) which deals with the question of opium revenues may present difficulties. In support of their proposals the Commission have urged that strong objections are being raised on moral grounds to Governments obtaining revenue from opium control, and that the reasons for these objections will be removed if the revenue is increasingly devoted to the " Campaign against Opium Smoking," and to "Social and Hygienic Development likely to reduce the future demand for opium."

11 On the other hand the Colonial Authorities may have difficulty under present financial conditions in treating their opium revenue in the manner suggested. It will be observed however that the terms of the Commission's recommendation are elastic. Their proposal is that the net opium revenue, after deduction of expenses connected with the campaign against illicit traffic in opium, education, propaganda, &c., should either be applied to the creation or increase of an opium revenue replacement fund, or transferred either to the ordinary budget with a view to meeting expenditure for social or sanitary purposes, or to the extraordinary hudget to meet expenditure on public works directly or indirectly connected with the campaign against opium smuggling. In the view of His Majesty's Government this recommendation is not to be taken to mean that if the balance of net revenue is transferred to the ordinary budget to meet expenditure for social or sanitary purposes, the Colonial Government would be required to earmark particular amounts from the opium revenue to be applied to particular social or sanitary purposes. They are of opinion therefore that while account will naturally have to be taken of local circumstances, it will not be necessary for the British representative to dissent in the event of the principle of the recommendation meeting with general acceptance in the Conference. You should accordingly try to reach an agreement on the point which will meet, so far as possible, the views expressed by the Commission, and at the same time avoid creating serious difficulties at the present time in the Colonial budgets.

I am, &c., !

READING.

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