665
166
to himself. If the trade is to be permitted in British ships and the British Colonial Governments in the Far East handle the opium traffic themselves, there would seem to be nothing intrinsical immoral in allowing British firms to participate in this traffic and adding these sales as an aid to their general exchange trade.
6. Before the war, two British firms established in Persia did large business in opium, viz., Messrs. Ph. Ziegler & Co., of Manchester, and Messrs. Haji Ali Akbar Shirazee & Sons Ltd., also of Manchester. The latter firm has now expressed its anxiety to re-enter the market, and Messrs. Ziegler & Co., also have shown signs of interest in the trade. If either, or both (and there is room for both) of these firms were able to re-enter the market, I am of the opinion that the results would be of great advantage both to the Singapore Government and to British trade. Prices of opium in Singapore would be more competitive, and furthermore, part of the payment in Persia for the opium purchased would take the form of Manchester piece-goods, and other articles of British manufacture. I therefore trust that you will see no objection to placing these two firms in communication with the appropriate department of the Colonial Office.
7. Copies of the despatch are being sent to His Majesty's Minister at Teheran and His Majesty's Consul at Shiraz.
I have, &c.,
L. HAWORTH,
Lieutenant-Colonel.
His Majesty's Political Resident in the Persian Gulf and Consul-General for Fars, Khuzistan, &c.
167
eventuality occur it should be easy to break the ring by inviting smaller merchants, outside the groups mentioned, to tender.
5. The Colonial Government concerned could doubtless specify the proportion of the price to be held in reserve in Bushire until that Government had received and tested the consignment to be of the standard prescribed, which would be stated in the circular.
6. Opium passes through so many hands at Shiraz and outside, and the purchase for export is already in practice so limited to the firms named that no unfairness could be alleged in calling on only the groups suggested or similar persons for tenders, since it would only entail preference being given to British subjects and to those Persian merchants who import British goods.
7. It would also make for the stabilization of prices if each Colonial Government could spread its requirements equally over the year, since long slumps followed by sudden demands are harmful. At the end of six months or a year each Government could compare the results of the experiment of direct purchase and see whether it has not been more advantageous than purchase through local brokers.
8. Should any Colonial Government still desire to make their purchase through agents I venture to suggest that, as recommended in my despatch to the Department of Overseas Trade, Messrs. Haji Ali Akbar and Sons should be allowed to share in the export trade.
As pointed out in my despatch, it would have the advantage of con- ferring a considerable advantage on British trade in South Persia, and there is no reason to suppose that this firm could not supply opium to the Colonial Governments con- cerned as cheaply as their present agents.
9. Copies of this despatch are being sent to His Majesty's Minister, Teheran, and His Majesty's Consul, Shiraz.
I have, &c.,
T. HAWORTH,
Lieutenant-Colonel,
Political Resident in the Persian Gulf and His Majesty's Consul-General for Fars, &c.
PUBLIC RECORD OFFICE
Reference:-
C.O.882/11
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
C. 30801/A/27 [No. 48.]
No. 123.
THE BRITISH CONSUL-GENERAL, BUSHIRE, to THE SECRETARY OF STATE
FOR FOREIGN AFFAIRS.
(Copy received in Colonial Office, 5th July, 1927.)
British Residency and Consulate-General,
Bushire, 5th June, 1927.
(Confidential.) (No. 29.) SIR,
I HAVE the honour to refer to your cable No. 1, of 21st May, 1927, and in reply to invite a reference to my despatch No. 1, of 24th March, 1927* to the Comptroller of the Department of Overseas Trade. My predecessor's despatch quoted in your cable dealt with the question of the direct supply of opium to Colonial Govern- ments, and my despatch quoted above dealt with the same subject with the additional issue that the British firm of Haji Ali Akbar and Sons, of Manchester, should be allowed to participate in the licensed opium trade, and replace the agency of the Nemazi firm. 2. The view was expressed in these despatches that the control of the Colonial markets by the Nemazi firm and their tools was undesirable and that provided com- petition could be stimulated the elimination of the middleman would undoubtedly be to the financial interest of the Colonial Governments.
3. There are branches in Bushire of the three leading Shirazi opium preparing concerns, and their directors are men of substance with many years' friendly relations with this Residency. I allude to Haji Ghulam Ali and Haji Muhammad Baqir Behbehani and Sons, Haji Sayyid Muhammad Reza Kazaruni and Sons, and to Haji Abdur Rasul Bushiri, the agent of Haji Muhammad Mehdi Dalal Isfahani. The procedure that I recommend for bringing them into touch with the purchasing Governments is as follows.
4. On every notification by a Colonial Government to this Residency of a certain quantity of opium being required for shipment by a certain date, the firms in Bushire or Shiraz selected would be circularized by the Residency to hand in sealed tenders by a certain date. The lowest tender would receive the contract; two or more tenders being equal the quantity could be proportionately divided. This should make. Owing to the jealousies always prevalent for prices being kept down by competition. among Persian merchants there should be little probability of the groups forming a ring to agree as to their tenders and quote higher prices. Should this improbable
* No. 122.
C. 30801/A/27 [No. 69].
No. 124
PROCEDURE TO BE ADOPTED BY THE STRAITS SETTLEMENTS GOVERNMENT FOR THE PURCHASE OF PERSIAN OPIUM.
NOTE OF A Meeting held in SIR MALCOLM DELEVINGNE'S ROOM ON THURSDAY, THE 11TH OF August, 1927. Present:
SIR MALCOLM DELEVINGNE, Home Office.
MR. ELLIS
MR. PASKIN
Colonial Office.
MR. WILSON, Superintendent, Government Monopolies, Straits
Settlements.
MR. NICHOLS, Foreign Office.
MR. FARRER, Department of Overseas Trade.
1. The relative advantages of buying direct from Persian firms, with the assist- ance of the Consul-General, Bushire, and of buying from English firms were discussed at length. Mr. Farrer felt that there would be administrative difficulties in the way of adopting the former procedure. Mr. Farrer also observed that, since the Consul- General is appointed by the Government of India, it would be necessary to consult that Government before entering into any arrangement with the Consul-General.
2. Moreover, Mr. Wilson did not feel assured that this procedure would afford him sufficient safeguards from the business point of view.
The Straits Settlements Government requires opium of a certain quality and com- plying with certain conditions, e.g., the morphine content should be 4-5 per cent., the opium should be capable of being converted into chandu by the usual processes, and should yield a specified percentage of chandu. The Consul-General is not an opium expert and has no such expert on his staff to conduct the necessary tests to ensure that the opium is up to the required standard before it is shipped from Persia.