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688.

PUBLIC RECORD OFFICE

Reference :-

TEC.O. 882/11.

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

C. 63017/A/29 [No. 92].

212

No. 189.

STRAITS SETTLEMENTS.

THE GOVERNOR to THE SECRETARY OF STATE.

(Received 11.45 a.m., 4th October, 1929.)

TELEGRAM.

[Answered by No. 191.]

4TH OCTOBER. Confidential. Your telegram 27th September, Confidential.* No objection to buying of opium from Persian Government Monopoly or its Agent, but ask you to press for a reasonable price and our usual terms and conditions regard- ing payment and delivery including tests by Government Analyst at Singapore. In that event the tests before shipment not necessary. For report on discussions with the Dutch see my despatch of 30th August, Secret.†

C. 63017/A/29 [No. 95].

No. 190.

STRAITS SETTLEMENTS.

THE SECRETARY OF STATE to THE GOVERNOR. (Sent 12.5 p.m., 19th October, 1929.)

CONFIDENTIAL.

TELEGRAM.

[Answered by No. 194.]

Your despatch of 31st July, Confidential. I approve of programme for purchase of opium in 1930 in quantities mentioned in your despatch with exception of provision for supply of chandu to Sarawak. As regards this please see my telegram of to-day.§

Report of meeting with representative of Persian Monopoly is being forwarded by despatch.-PASSFIELD.

C. 63017/A/29 [No. 97].

SIR,

No. 191.

STRAITS SETTLEMENTS.

THE SECRETARY OF STATE to THE OFFICER ADMINISTERING

(Confidential.)

THE GOVERNMENT.

[Answered by No. 192.]

Downing Street, 23rd October, 1929.

WITH reference to Sir H. Clifford's Confidential telegram of the 4th October, || I have the honour to transmit the accompanying copy of a note of a discussion held at the Colonial Office on the 15th October and attended by Mr. Kitabgi, a representative of the Persian Opium Monopoly.

2. You will observe that Mr. Kitabgi proposes to arrange for a representative of the Persian Monopoly to visit Singapore about January of next year and I shall leave it to you, if it is possible to reach an agreement, to make any arrangements with the Persian representative which you may consider suitable regarding the supply of Persian opium during 1930.

3. I have thought it desirable, in spite of Mr. Kitabgi's assurance, to ask that His Majesty's Minister at Teheran may be called upon to furnish a detailed report as to the present condition and immediate prospects of the Persian Monopoly and the question whether, in fact, it is likely to be in a position to guarantee adequate supplies of opium of a good quality during the latter part of next year.

* No. 187.

+ No. 188.

‡ No. 186.

§ No. 254.

|| No. 189.

213

4. While I am of the opinion that the establishment of Government monopolies is, in principle, a step in the direction of more perfect control, I fully recognize that the new Persian Monopoly may for a time at any rate prove in practice an unsatis- factory source of supply and that difficulties may arise regarding price and quality and the form of contract. It-is, therefore, necessary to consider how these difficulties may be met, whether by a greater measure of co-operation between the purchasing Administrations or by seeking another source of supply. In this connexion I should be glad to learn if the experimental consignment of Turkish opium imported this has been found satisfactory and if there is any reason why it is not proposed to repeat year the experiment in 1930.

I have, &c.,

Enclosure in No. 191.

PASSFIELD.

NOTE ON A MEETING WITH MR. KITABGI, a RepresentaTIVE OF THE PERSIAN OPIUM MONOPOLY.

MR. KITABGI attended a meeting of representatives of the Colonial Office, Home Office, and the Crown Agents at the Colonial Office on the 15th October, 1929, to discuss future arrangements for the supply of opium to the Straits Settlements Government.

Mr. Kitabgi stated that before the middle of next year the Persian Government Monopoly would be in a position to supply opium of the standard and quantity required, though it was not yet certain whether they would or would not employ an exporting agent. He did not object to examination by the Government Analyst of the consign- ments of opium on arrival at Singapore, but stated that the Persian Monopoly would desire to have the opportunity at the same time to take samples for independent analysis. Any dispute arising between the Persian Monopoly and the Straits Settle- ments Government should be referred to expert arbitration.

As regards payment, Mr. Kitabgi did not appear to be ready to agree to the present arrangement whereby the Straits Settlements Government only makes pay- ment for each consignment after test and acceptance (though within 14 days of delivery of the consignment at Singapore). He proposed that a proportion, say 50 per cent., should be paid on delivery, and the remainder on acceptance. There would be no objection to payment in London.

It would be more convenient for the Persian Monopoly if large consignments could be arranged rather than smaller consignments at frequent intervals. One reason for this was that the Monopoly had no permanent representative at Singapore. It would also be preferred if a contract could be arranged for a whole year at a time, payment being made at the time of each consignment.

Mr. Kitabgi mentioned that the Persian Monopoly were not altogether satisfied by the present requirement that the opium for Singapore should be shipped from Bushire. It was more convenient to convey consignments overland to a Mediterranean port, since cheaper freight arrangements could be made there than would be possible at Bushire. The Persian Government would, of course, consider itself responsible for risk of losses on the way.

A

It was felt that this and the other points which had been raised could best be discussed with the proper authorities at Singapore. Mr. Kitabgi therefore undertook to arrange direct with the Superintendent of the Straits Settlements Monopoly Depart- ment for a representative of the Persian Monopoly to visit Singapore about January of next year.

C. 63017/A/29 [No. 103].

No. 192.

STRAITS SETTLEMENTS.

THE OFFICER ADMINISTERING THE GOVERNMENT to

(Confidential.)

MY LORD,

THE SECRETARY

OF STATE.

(Received 23rd December, 1929.)

Government House, Singapore, 27th November, 1929.

I HAVE the honour to acknowledge the receipt of Your Lordship's Confidential despatch of the 23rd October, 1929,* on the subject of the possibility of direct dealing

* No. 191.