165
the financial arrangements are disliked by unofficial members and by the whole con- munity as retarding and possibly preventing necessary work of development. The present increased consumption in no way retards the progress of the main scheme, and anything like ? pressure or censure by the League of Nations would be deeply resented by a loyal Colony. Hope that the British Representative(s) at the Assembly of the League of Nations will bear this in mind.
C. 30801/A/27 [No. 34].
No. 122.
664
C. 14188/26 [No. 26].
No. 120.
STRAITS SETTLEMENTS.
THE SECRETARY OF STATE to THE GOVERNOR. (Sent 2.25 p.m., 30th August, 1926.)
TELEGRAM.
[Answered by No. 121.]
CONFIDENTIAL. Your telegram 24th August. It should have been clear from my telegram of 20th Julys that priority of buying opium from person named was under consideration, and I am surprised that in the circumstances you did not refer to me again before making further arrangements with him. Moreover these supplies make total of 3,900 chests this year, i.e., more than 75 per cent. more than average supplies from India for past five years. It is true His Majesty's Government have agreed to the non-restriction of supplies of chandu to be placed on sale pending working out of approved policy. Nevertheless at the time when policy was under If consideration there were no indications of possibility of such enormous increase. question should be raised at assembly of League of Nations next month, as it probably will be, British Representatives would be greatly embarrassed, as it would be difficult for them to give satisfactory reply.
I consider that before entering into contract for supply of such large quantity you should have given me a clearer indication of possibility with fuller account of reasons for such greatly increased requirements than is given in your despatch of 28th May, Confidential. Telegraph fuller particulars of arrangements made, e.g., over what period will supply be spread and whether you are definitely committed to Nemazi for whole amount.-AMERY.
C. 14188/26 [No. 38].
No. 121.
STRAITS SETTLEMENTS.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 2.58 p.m., 21st September, 1926.)
21ST SEPTEMBER. Secret. Your Confidential telegram of 30th August, and my Confidential telegram of 4th September.** Hope you will realize what a difficult position I am in. Malaya has accepted on Imperial grounds an opium policy which, In the Colony on local grounds, is considered unnecessary and likely to cause trouble.
§ No. 114.
C. 12943/26: not printed. ** C. 14188/26 [No. 34]: not printed.
* No. 117.
† No. 115.
‡ No. 119.
¶ No. 120.
THE BRITISH CONSUL-GENERAL, BUSHIRE, to THE DEPARTMENT OF OVERSEAS TRADE.
(No. 1.)
SIR,
(Copy received in Colonial Office, 3rd May, 1927.) [Answered by No. 123.]
British Consulate-General, Bushire, 24th March, 1927.
I HAVE the honour to inform you that Mr. Husain Agar, the Managing Director
of Messrs. Haji Ali Akbar, of Manchester, interviewed me recently on his arrival in Bushire, and sought to obtain my good offices in obtaining an entry into the opium ✔ market for the Far East based on Singapore.
2. At the present time the suppliers of this market appear to me to consist of one firm, Mr. M. A. Nemazi, of Singapore. There are other names which appear from time to time, viz., J. A. Elias, Malacca Street, Singapore, Manasseh and Messrs. Stephens Paul, but I am of the opinion that these firms are used merely as covers by Mr. Nemazi in order to rig the market.
3. In regard to the first named of these firms, I have definite grounds for suggesting that it is working in with Mr. Nemazi. On 22nd December, 1926, the Head of Opiumregie of Batavia issued import licences Nos. 7, 8, and 9 for a total of 700 cases of Persian opium to be imported by Mr. J. A. Elias, of 5, Malacca Street, Singapore. From 16th to 18th February, I was bombarded by Persian merchants for permission to ship against these licences, of the issue of which they had received intimation. When called upon to produce their shipping instructions they were found to be signed by Nemazi and not by Elias. I, therefore, refused to grant a permit to ship by a British vessel. Subsequently these agents all obtained telegrams from Mr. Elias, which they produced, authorizing them to ship the opium against his licence. Nevertheless, I am credibly informed the credits were opened by Nemazi. A similar case has occurred since this draft was written.
4. It would appear that Mr. Nemazi has the monopoly of the opium trade in Singapore, Batavia, and Siam, and is using the other firms as nominal rivals to force the contracts to the most favourable figures. I give a comparative table worked out on the assumption of one Singapore dollar being 2s. 6d, and a fupee 1s. 6d. showing the prices paid for opium by the Government there and the price c.i.f. and i. of Persian opium.
Percentage Morphine.
4-5 8-10
Singapore price. Persian price c.i.f, and i.
lb.
25s.
31s. 3d.
lb. 178. 4d. 22s. 7d. to 24s. 10d.
As I am not aware of the present rate of exchange for Singapore dollars, nor the Customs duty on opium, I am unable to make an exact comparison, but the difference would appear to show an exorbitant profit.
5. Apart from the question of the profit made by Mr. Nemazi, I think that present conditions are undesirable. It is undesirable that a virtual monopoly should exist if my suspicions are well founded, but from the point of view of British trade, it is doubly unfortunate that the monopoly should be in the hands of Mr. Nemazi. This gentleman makes money out of British security (in Singapore) and yet does nothing in return for British interests. At the present time the bulk of his trade is legitimate. As soon as That is mainly on account of the political economic situations in China. matters settle down there he will resume his contraband trade, which he formerly followed, having been supported by us during the bad period at a substantial profit
-
PUBLIC RECORD OFFICE
Reference :-
mudhaifhC.O.882/11
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON