672
PUBLIC RECORD OFFICE
Reference :-
C.O.882/11
PUBLIC RECORD OFFICE, LONDON |
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
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Colonial Office and for that reason he thought it had at once become suspect in the Straits. It was necessary to avoid all appearance of pressure. Hitherto it had been believed that the alternative of a tender system for which the Governor was asking was identical with the system of tenders as known in this country and it had been decided that if that system was adopted to instruct the Governor that tenders should not be limited to Singapore firms, but that British firms of known repute should be permitted to tender. But in discussing the matter with Mr. Wilson, Sir G. Grindle ..had found that this instruction was not practicable as the system of tenders for opium
as practised in the Straits was not the tendering system as generally understood.
MR. WILSON then explained that in purchasing opium in the past he had first asked for tenders, but only with a view of ascertaining who was in a position to supply. He would then bargain with the firms who had tendered and place orders at such times and in such quantities as were most calculated to ensure a low price. This bargaining could only be carried on at the spot. It was impossible to deal in this way with firms in London. It was pointed out that this system was quite different from that indicated in the Governor's despatch, and so far as the objections taken by him to the agency scheme went, appeared to stand on much the same footing as the system. Mr. Wilson thought that the despatch was written without full knowledge of the system which had previously been adopted
In answer to Sir M. Delevingne MR. WILSON explained that Persian opium had been bought in this manner in pre-war days before the contract with the Indian Government and also in 1919 to fill a deficiency in the supply from India. The first firm to supply had been Elias, but in 1912 Nemazi had come to Singapore and had competed with him. Other firms from whom purchases had been made were Marnasch, Myer Bros., Stephens Paul, and Ruben. It was not certain to what extent, if at all, these firms acted in collaboration. He knew that there was no love lost between Elias and Nemazi. He rather suspected that Nemazi controlled the situation, not so much by any arrangements made in Singapore but by the fact that he could control the supply in Persia.
MR. PASKIN further explained that Mr. Wilson's position had been that whilst he preferred the system which he had described and to which he was accustomed he had understood that it must be changed. He had therefore supported the agency scheme as the best alternative.
SIR MALCOLM DELEVINGNE agreed that local opinion should be respected but only Pro- so far as it did not conflict with the general policy of the Imperial Government. vided that policy was kept in mind and nothing done to embarrass the Imperial Government the mode of purchase was a matter which, so far as the control of the opium traffic was concerned, could be left to the Colonial Government.
After some discussion is was agreed that if Mr. Ormsby Gore should fail to convince the Governor and the agency scheme had to be dropped in consequence, the system of tendering as described by Mr. Wilson could be agreed to, provided the Straits Settlements Government did not deal with any one suspected of being connected with the illicit traffic or acting as a fence or agent for any such dealers. It would be necessary that this should be made fully clear to the Governor. Nemazi could not, therefore, be employed. Bellairs Atkinson and the other British firms who had applied for the agency could in that event be informed that if they were willing to open an establishment in Singapore their tenders would be considered by the Straits Settlements Government.
The Committee also considered the inquiry from the Governor in regard to the licensing of firms in Singapore to deal in opium (see copies of cable despatch attached). It was presumed that the firms applying for licences required them for the purpose of supplying opium to, or procuring opium for other Governments. It was decided that it was quite impossible that a licence should be granted to Nemazi to deal in, or procure opium. It would be entirely inconsistent with the principle on which the Imperial Government acted and which it upheld at Geneva, and in addition, we had already warned several governments against Nemazi.
It was suggested by SIR M. DELEVINGNE that it would be useful to the Straits Settlements Government as a check on the local dealers in Singapore if Mr. Wilson were to keep in touch with the position in the Persian market through the British representatives in Persia, and this was agreed to.
C. 53017/28 [No. 24].
(Paraphrase.)
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No. 135.
STRAITS SETTLEMENTS.
THE GOVERNOR to THE SECRETARY OF STATE (Received 12.32 p.m., 9th May, 1928.)
TELEGRAM.
[Answered by Nos. 136 and 140.]
9TH MAY. My Confidential despatch of 22nd December.*
As an experiment
P'ersian
If you agree please request I am prepared to give Bellairs Atkinson a trial order.
pure them to submit tender for supply of 500 chests of 140 one-pound slabs of opium containing 8 per cent. to 10 per cent. morphine. Inclusive price per chest and cost in freight to Singapore to be quoted. Government to make no payment what- ever until after opium delivered in Monopolies' warehouse in Singapore and found up to contract by the Government Analyst, whose decision shall be final. If morphine content less than 8 per cent. Government reserves the right to reject. Delivery to be made before next December, preferably in five equal monthly consignments. We will say whether or not we accept after receiving quotation.
C. 53017/28 [No. 30].
No. 136.
STRAITS SETTLEMENTS.
THE SECRETARY OF STATE to THE GOVERNOR.
(Sent 7.20 p.m., 18th May, 1928.)
TELEGRAM.
[Answered by No. 137.]
Your telegram of 9th May.† Opium. Bellairs, Atkinson and Company, who were invited by letter of 16th May to tender, now quote flat price c.i.f. at Singapore of 36s. 6d. per lb. on conditions named plus additional conditions described below and subject to immediate reply :-
(1) sellers to be paid in London through Crown Agents immediately after ascer- tainment of test and weights of each shipment;
(2) Bellairs, Atkinson and Company to be informed results of testing and weigh- ing within 14 days of delivery of goods at Singapore;
(3) shipment from Bushire in 5 monthly instalments of 100 chests or in two shipments of 250 chests each, at Bellairs, Atkinson and Company's option, last ship- ment to be made not later than 7th November;
(4) owing to change in financial situation in Persia, Straits Settlements Govern- ment to open credit with Imperial Bank of Persia, London, on acceptance of order available for 70 per cent. payment in cash against shipping documents which will include Bellairs, Atkinson and Company's guarantee of analysis taken on shipment from Bushire and certificate that opium shipped is of the weight and tests and in every respect fully up to requirements of contract.
As alternative, if instead of concluding definite immediate contract you will make definite offer to buy at 35s. per lb. on condition that offer is taken up within 14 days, it is probable they could supply opium required at that rate.
Telegraph immediate reply.-AMERY.
* No. 132.
† No. 135.