661
PUBLIC RECORD OFFICE
Reference :-
C.O.882/11
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON |
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had before them, however, the Advisory Committee's suggestion that a uniform maximum limit, calculated according to the number of the adult Chinese male popula- tion, should be fixed for the amount of prepared opium placed on sale for consump- tion. Any ill effects, however, which might be produced by an arbitrary limitation of supplies on these lines would, of course, be very much intensified by progressive reductions in the supplies available for consumption.
3. It will be recalled that the Far Eastern Colonial Governments were strongly of opinion that an arbitrary restriction of supplies would embarrass them in two separate ways.
4. In the first place, the inducements to smugglers (already great) would be enormously increased. The territories concerned would be flooded with illicit opium to such an extent that the preventive services would be unable to cope with it; in other words, such measures of control as the Colonial Governments are now able to exercise would vanish. This would be very regrettable in view of the steps which have recently been (and are continuing to be) taken (e.g., by the replacement of private shops by Government shops, with agents paid by fixed salaries, and by steps taken in Malaya towards the institution of a system of registration) with a view to rendering more effective the control of the Colonial Governments over the consump- tion of prepared opium.
This was
5. Secondly, in the absence of a system of registration and rationing of individual consumers, it is feared that an arbitrary reduction of the amount of opium placed on sale would result in the buying up and hoarding of stocks by speculators, which would cause widespread discontent among the ordinary consumers. actually the experience in Malaya in 1920. Having formed the opinion that the time was ripe for an attempt to introduce a system of rationing, steps were taken by the Governments of the Straits Settlements and Federated Malay States early in that year to reduce the amount of opium supplied to retail shops by 10 per cent. of the average monthly sales for the previous twelve months. It was, however, found that hoarding and profiteering occurred to such an extent as to cause great discontent among the poorer classes of consumers. There was a great deal of rowdyism, and after a few months' trial the experiment had to be abandoned.
6. It is clear from this experience that it would be most unfortunate if the Malayan Governments were forced into a position of having to repeat this limitation of bulk supplies of chandu before they had been able to put into operation a system of individual registration and rationing, which would appear to be the only safeguard against a repetition of the 1920 experiences.
7. It is now generally accepted that the time is not yet ripe for introducing such a system in Malaya; and it is held that the geographical and economic circum- stances of Hong Kong are such that it is unlikely that a system of this kind could even be successfully introduced there. The Malayan Governments are, however, making very good progress on the lines of the policy recommended in the Report of the Malayan Opium Committee, which is designed to lead up, through a series of stages, to a system of individual registration and rationing. Any premature curtail- ment of supplies by the Government of India would probably completely upset the steady working out of the approved policy in Malaya, and this would be most un-
fortunate.
8. The near future would be a particularly inopportune time for any such step since, in view of the rapidly improving economic conditions in Malaya, the demand for chandu may be expected, temporarily at any rate, to go up, by reason of the additional Chinese attracted to the country and also to some extent by the increased purchasing power of individuals.
9. Another factor of importance to Malaya is that the ultimate success of the approved policy will depend in no small degree on the education of Chinese opinion towards a willing co-operation, or at any rate acquiescence in the measures of control adopted. The possibility of securing such co-operation by sympathetic administration has recently been demonstrated in Sarawak in connexion with the introduction of a system of registration there. and it appears that the efforts of the Malayan Govern- ments in this direction are also meeting with a considerable measure of success. If, however, it were necessary to take prematurely more drastic action than is at present contemplated in Malaya, the possibility of securing this acquiescence would be seriously jeopardised, if not completely removed.
10. Another consideration which is relevant to the question under review is the fact that the Malayan Governments have now taken steps, by the creation of Opium Revenue Replacement Funds, towards rendering themselves independent of the Levenues derived from the sale of opium These steps involve a heavy sacrifice on
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the part of Malaya beginning at once; and they have only been agreed to in the teeth of very considerable opposition from the unofficial community. Great resentment will, naturally, be caused if this voluntary act of self-sacrifice is immediately followed by arbitrary action by the Government of India in imposing a compulsory restriction on supplies of opium from the source from which it has always been derived in the past, and it would have a most unfortunate moral and political effect.
C. 863/26.
(Confidential.)
SIR,
No. 110.
INDIA OFFICE to COLONIAL OFFICE. [Answered by No. 111.]
India Office, Whitehall, London, S.W.1, 11th January, 1926. WITH reference to the letter from this Office of 11th December, 1925,* I am directed by the Earl of Birkenhead to enclose, for favour of any observations which Mr. Secretary Amery may have to make, the draft of a telegram proposed to be despatched to the Government of India relative to the questions, discussed at the Inter- departmental Conference on 6th January, of the supply of Indian opium to Indo-China, and the general policy which the Government of India have under consideration in regard to the export of opium to all destinations.
Enclosure in No. 110.
I am, &c.,
E. J. TURNER.
SECRETARY OF STATE TO VICEROY, FINANCE DEPARTMENT. Draft Telegram.
OPIUM for Indo-China. I have considered together your Confidential despatch 12th November last and your telegram 2nd December last, 1569 S, in conjunction with Departments of His Majesty's Government concerned. Should you decide in favour of declaring intention of progressive reduction of exports and their extinction within a definite period I should warmly support such a policy. Such a policy would enhance immensely prestige of India and would finally remove main ground of the criticism to which, however unreasonably, your opium policy has been exposed not only in India but in this country and abroad, while at the same time invidious task of rationing selected territories would be avoided. Suggested policy would be welcomed by Foreign Office and Home Office from point of view of British relations with foreign countries and League of Nations.
Meanwhile I agree to conclusion of agreement with Government of Indo-China but consider that, as in case of Hong Kong Agreement for 1926, present duration should be limited to one year. You could explain that your general future export policy is under consideration. I should then see no objection to acceptance of estimate of 2,400 chests. This quantity appears indeed excessive and would give relatively high datum for percentage reductions, but latter is a minor consideration if policy of progressive reduction is subsequently decided on, and, if it is not, your hands will still be free at termination of one-year agreement for considering terms of its renewal.
N.B. This telegram was sent off on 26th January, 1926. See 2632/26: not printed.
* No. 108.