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PUBLIC RECORD OFFICE

Reference :-

TLC.O.882/11\

PUBLIC RECORD OFFICE, LONDON

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

C. 73017/30 [No. 56].

220

No. 198.

STRAITS SETTLEMENTS.

THE GOVERNOR to THE SECRETARY OF STATE.

(Received 8.20 a.m., 11th October, 1930.)

TELEGRAM.

11TH OCTOBER. No. 154. Confidential. Please see Personal and Confidential telegram from Grindle dated 23rd September.* There has been no material alteration in opium stock since my Confidential despatch dated 27th January, except that, with decreasing consumption, there is less need than ever for immediate fresh supplies. I consider it impossible to place even a small order at once; our opium revenue is already sufficiently disorganized by drop in consumption, and there would be a serious difficulty as to storage accommodation. The policy of this Government will be to replace each year the previous year's consumption of Persian opium provided reason- able terms can be secured. On this basis I have budgeted for 750 chests in 1931. I am strongly opposed to purchase of this amount without open tender, and I should not be willing to appoint any one firm to be sole agents for all or major portion of future supplies. Despatch follows.

C. 78017/30 (No. 60].

(Secret.)

MY LORD,

No. 199.

STRAITS SETTLEMENTS.

THE GOVERNOR to THE SECRETARY OF STATE.

(Received 17th November, 1930.)

[Answered by No. 201.]

Government House, Singapore, 17th October, 1930.

I HAVE the honour to acknowledge receipt of Sir Gilbert Grindle's Confidential telegram of 23rd September, 1930, and to confirm my telegram of the 11th October, 1930, in reply as follows:-

"154 Confidential

*

[See No. 198].

Despatch follows.

2. The probable stock position as far as it could be foreseen at the beginning of this year was set out in the enclosure to Mr. Scott's Confidential despatch of 27th January, 1930. Since the date of that despatch consumption has steadily dwindled and for the past four months the Monopolies Department has been using its stock of opium at half the rate then estimated. I can see no reason to suppose that there will be any marked increase in the rate of consumption for the first-half at least of next year.

3. The decrease in consumption has of course seriously affected the opium revenue which is now expected to produce $9,000,000 in 1930 instead of the $12,000,000 originally estimated.

4. In addition as far as can be foreseen arrivals of Indian opium alone will for the immediate future about balance total consumption. In these circumstances the only safe policy is that indicated in my telegram of replacing each year the previous year's consumption of Persian opium.

5. While there are obvious objections to calling for tenders so far in advance of the date at which delivery is required, I am prepared, if Your Lordship concurs, in view of the urgency of the representations contained in Sir Gilbert Grindle's telegram, to agree that the Crown Agents should be instructed to call for tenders from the following firms :-

Haji Ali Akbar.

Bellairs Atkinson.

Andrew Weir. Ziegler.

for the supply of 750 chest of Persian opium in 1931.

* No. 197.

† No. 194.

‡ No. 198.

221

6. Of these 750 chests, 150 chests should be of opium containing 4 per cent.- 15 per cent. morphine for delivery between April and July, 1931. The balance of 600 chests should be of opium containing 8 per cent.-10 per cent. morphine and delivery should be given between September and the end of the year 1931.

7. The previous conditions as to delivery and testing before payment should be maintained, and the notice should contain the usual clause that the Government does not bind itself to accept any tender. I suggest that tenders might close at any con- venient date towards the end of February to be fixed by the Crown Agents.

8. I have given careful consideration to the suggestion contained in Sir Gilbert Grindle's telegram that Messrs. Ziegler and Co., should be appointed sole agents for the purchase of Persian opium on behalf of this Government, but on this point I see no reason to vary the decision arrived at by my predecessor, Sir Hugh Clifford.

I have, &c.,

JOHN SCOTT,

C. 73017/30 [No. 65].

No. 200.

Governor's Deputy. (Draft approved by Governor).

INTERDEPARTMENTAL OPIUM COMMITTEE.

MINUTES OF THE ELEVENTH MEETING, HELD AT THE HOME OFFICE ON WNDNESDAY, 10TH DECEMBER, 1930, AT 3.30 P.M./

Present:

SIR MALCOLM DELEVINGNE, K.C.B., Home Office.

MR. M. D. PERRINS, Home Office.

MR. NOEL CHARLES, Foreign Office.

SIR CECIL CLEMENTI, Governor of the Straits Settlements.

MR. W. D. ELLIS, C.M.G.,

MR. J. J. PASKIN, M.C.,

MR. J. MARTIN,

Colonial Office.

THE HON. CECIL FARRER, Department of Overseas Trade.

SIR MALCOLM DELEVINGNE explained that the Committee had met to

discuss

with Sir Cecil Clementi the question of the supply of Persian opium to the Straits Settlements which had given the Home Government much food for thought.

There were two sides to the question. On the one hand there were the commercial considerations namely, the facts (1), that the continued existence of the only British firm in Persia trading in British goods was at stake, and (2) that a monopoly by one or more firms in Persia would be able to raise the price excessively against the Straits Settlements Government. These considerations affected the Department of Overseas Trade and the Straits Settlements Government.

The other side of the question was the situation created by the fact that some of the big opium merchants in Persia were engaged in supplying the illicit traffic with the Far East. This was a matter of concern to the Home Office and Foreign Office as affecting our policy at Geneva.

The position was most unsatisfactory and the Home Government was anxious to put it on a basis satisfactory to all concerned, i.e., to the Departments represented on the Committee.

Unfortunately the situation in Persia was very unstable. granted by the Persian Government to a man named Hadji Amin but as his contract A monopoly had been stipulated that 6,500 cases should be exported annually, which was far more than the legitimate demand, it followed that the monopoly could only continue by illicit exports. Advices recently received from Persia indicated the possibility that opium would in future be sent to the Far East via Russia. MR. FARRER thought this would very probably be so and moreover, that Hadji Amin's adventure was supported by Russian