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SIR CECIL CLEMENTI asked if the British Government were putting forward any proposals at the Conference. SIR M. DELEVINGNE replied that his instructions were that the recommendations of the League of Nations Commission on Opium Smoking in the Far East might be accepted in general, subject to four special exceptions, viz., the recommendations on the subjects of reduction in prices, compulsory smoking in public establishments, compulsory registration with rationing, and opium revenue.

As regards the proposal in favour of smoking in public establishments, which His Majesty's Government were not prepared to accept, SIR C. CLEMENTI declared himself definitely opposed to reopening of the divans, of which only a few now remained (in the Federated Malay States). MR. TRATMAN stated that public opinion in Hong Kong would be violently against it. MR. CATOR said that the Commission's recommendation was impracticable: it would involve the establishment of sixty 200- smoker divans in the Straits Settlements. MR. ALLEN pointed out that conditions in parts of the Federated Malay States made it impossible to contemplate the establish- SIR M. DELEVINGNE said that a middle course ment of permanent divans there.

might be suggested at Bangkok (as an alternative to the abolition of smoking in private) under which there could be both divans and shops from which opium could be sold for private smoking, and asked what was the case to be put forward against the divan as such. SIR C. CLEMENTI recalled that when the question was discussed in connexion with Hong Kong about twenty years ago, the definite opinion was that divans ought to be closed. As regards the argument that certain smokers would abandon the habit if they had to smoke in public, the answer was that it was in fact impossible to confine smoking to the divans. SIR M. DELEVINGNE referred to the remark in the observa- tions of the Straits Settlements Government that the question of lowering the price in divans, where the smoker could not keep and got no payment for the dross, was under consideration—since the existing disparity between the private smoker and the divan smoker in this respect was the principal reason for the unpopularity of the Government saloons, but it was agreed that no change should be made pending the Bangkok discussions.

The subject of prices was next raised. SIR C. CLEMENTI explained that his object * in proposing a reduction of prices, to which the Home Government were opposed, was to checkmate the smugglers. If the Government received more of the trade it could spend to greater advantage the profits which at present accrue to the illicit traffickers. In reply to Sir M. Delevingne, MR. CATOR stated that smuggling was at present as much SIR M. DELEVINGNE said in hand as it ever had been, in fact was rather more so.

that the reasons for the British Government's attitude were that low prices do not mean the permanent elimination of the smuggler, and secondly, that low prices encourage smoking by people who would not otherwise smoke. In any case the Hong Kong Authorities had stated that they could not compete with the smugglers, except at a loss. MR. CATOR said that Malayan prices would have to be reduced to $5 per tahil to compete with illicit opium at its present price, a price which he believed would involve a reduction in opium revenue, and further, that if this were done, the smuggler would reply by lowering his prices, and in the long run the Government would not be able to compete SIR C. CLEMENTI pointed out that Hong Kong had competed successfully with the smugglers a few years ago when prices were reduced experi mentally for a short period. MR. TRATMAN, however, suggested that there had been special circumstances then. SIR CECI, said that the Netherlands East Indies Authorities had declared themselves opposed to price reduction. He suggested that Sir Malcolm should see what was said on the subject at Bangkok, but that His Majesty's Govern- ment should keep an open mind.

It was agreed that parity of prices in the various territories should be aimed at, so far as possible. MR. TRATMAN pointed out the difficulties arising from fluctuations in the Hong Kong exchange.

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There was general agreement in favour of joint-purchasing arrangements. supply-of prepared opium to Hong Kong from Singapore was also discussed tenta- tively. It was pointed out by Mr. Cator that the capacity of the packing plant was an important factor in this proposal.

Coming to the proposal of the Commission for compulsory licensing and rationing, Sir M. Delevingne asked as to the working of the present system of registration and the experience obtained under it. MR. CATOR thought that certain improvements could be made in the existing registration scheme in Malaya without going so far as to drive smokers to the illicit trade, e.g., there is no system of identification, and also no

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system whereby dead" licences were returned; restriction to a single shop might be an advantage. MR. TRATMAN thought the registration in Hong Kong would provide no valuable data, but SIR M. DELEVINGNE pointed out that the object was not to collect data but to pave the day for eventual rationing. MR. TRATMAN replied that in Hong Kong the prospect of introducing rationing was indefinitely remote.

SIR M. DELEVINGNE suggested that something on the lines of the Dutch system of regional treatment of the opium problem might be considered for Malaya, viz., employ. ment of different methods of control in different areas according to differences of local circumstances, e.g., a special policy might be adopted in the Federated Malay States and Unfederated Malay States, where, he understood, that the illicit traffic was almost non-existent. MR. CATOR thought that, though there happened to be no considerable illicit traffic in the Federated Malay States at present, the potentiality always existed. SIR M. DELEVINGNE also asked why opium consumption should not be completely suppressed in Christmas Island, where smuggling could be easily con- trolled. MR. ALLEN feared that the labour supply might be affected, and he pointed out that the coolies had no other recreation from their arduous work. SIR C. CLEMENTI thought, however, that suppression in the Island should be considered. He also agreed with Sir M. Delevingne that an advance might be made in the less accessible parts of the Malay States.

SIR M. DELEVINGNE pointed out that the Hokkien tribe supplied an exceptionally large percentage of smokers and suggested that the admission of immigrants might be organized so as to draw a large proportion from districts or tribes less given to smoking, there was, he observed, a considerable difference between different parts of China in this matter. SIR C. CLEMENTI said that it would be out of the question and that control over the immigrants was greatly facilitated by the fact that they were drawn from different tribes speaking different languages; but he thought that (in connexion with proposed legislation) a rule against the admission of addicts should be considered.

As regards the League Commission's recommendation on the subject of opium revenue, SIR C. CLEMENTI said that he certainly did not propose to earmark the revenue for any special purposes. MR. CATOR pointed out that large amounts (equal to almost the whole opium revenue) were already spent on social services of different kinds SIR M. DELEVINGNE asked how far these services had a real bearing, on the conditions which produced the opium smoker and suggested for consideration whether more might not be done in providing the Chinese population with alternative forms of recreation ani improving the conditions under which the immigrants live and the like; but MR. CATOR said that an enormous amount was already being done in this direction. He promised to prepare a statement on the subject

There was general agreement in favour of closer co-operation between the pre- ventive services in the various opium-smoking territories. This could be assisted by periodical meetings of the heads of these services. MR. TRATMAN made a reservation regarding the admission of the Macanese and Chinese services to these meetings.

C. 92871/32 [No. 3].

SIR,

No. 30.

SIR M. DELEVINGNE to FOREIGN OFFICE.

(Copy received in Colonial Office, 21st January, 1932.)

Home Office, Whitehall, S.W.1, 23rd December, 1931. I HAVE the honour to submit the following report on the proceedings at the International Conference on the Suppression of Opium Smoking which met at Bangkok on the 9th November last and which, acting under the Full Power enclosed with your letter of the 21st September, I attended as the Delegate of the Government of Great Britain and Northern Ireland.

The Delegation included as Technical Advisers~~-

From Hong Kong-Mr. D. W. Tratman, C.M.G., Principal Assistant Colonial Secretary, and Mr. J. D. Lloyd, Head of the Opium Preventive Service.

PECORD OFFICE

11111 C.O.8

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