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RECORD OFFICE

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bimmi C.O.882/12

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the opium produced. Such an arrangement would be entirely consistent with the obligations of the Siamese Government under the International Conventions and the opium so purchased would take the place of opium which the Government would other- wise have to import. The arrangement would enlist the interest of the hill tribes in preventing the smuggling of other opium into Siam, and might be expected to produce better relations generally between the Siamese authorities and the tribes. Obviously, however, such an arrangement would only operate very imperfectly unless the cultiva- tion of opium on the Burmese side of the frontier can also be brought under control, and the Siamese authorities would certainly welcome the co-operation of the Burmese Government in the matter. The observations which were made by Mr. J. Marshall, who represented the Government of India at the Conference, in regard to the position in the Shan States indicated that a solution on these lines might be possible. He said, Opium has long been grown on the hills east of the Salween and the growing and selling of it is regarded as a perfectly legitimate operation. These areas are very remote and are largely covered with jungle, and for practical reasons it would be difficult for the Government to assume strict control of cultivation and sale at present. If, however, Burma is separated from India, it may be possible to obtain the supplies of opium which Burma requires from the Shan States instead of from India. In that case, it may be possible to exercise much stricter control over cultivation and sale without materially affecting the economic conditions of the cultivation in these areas. For a legitimat outlet will there be provided for the opium which they are accustomed to cultivate."

It will be seen that the Conference produced no sensational results, nor was it anticipated, under the conditions at present prevailing in China and without the co- operation of the Chinese Government, that it would. The League Commission rendered very useful service in collecting information and presenting an authoritative statement as to the conditions existing, and the working of the system of control, in the several territories; but its main recommendations for the suppression of the practice of opium smoking did not appear calculated to achieve the object in view and, as pointed out above, were not always consistent with their conclusions as to the facts of the general situation. The Conference, nevertheless, did useful work in obtaining an agreement for the more complete application of the system of Government Monopoly, and in* indicating certain lines on which further progress can be made, particularly as regards the regional applications of stronger measures in areas where the illicit traffic does not present a serious obstacle, and as regards the improvement of the conditions of life for the classes from which opium smokers are mainly drawn. There were also un- doubted advantages in holding the Conference in one of the opium-smoking territories of the Far East. It gave Delegates opportunities of discussing matters with officials of the local administrations who could not all have been brought to a Conference at Geneva; it brought the local officials themselves from the various territories into closer relations; and it will have had the effect of impressing official and public opinion in the territories with the importance which the Governments and the League attach to the subject.

I should perhaps add that the American representatives, who were present in the capacity of Observers, did not take a prominent part in the proceedings of the Confer- ence, and the representative of the Philippines administration. Colonel Sweet, had not much in the way of information or suggestion to offer. with regard to the suppression of the illicit traffic.

The arrangements made by the Siamese Government for the Conference were admirable, and every facility was given to the delegates to make themselves acquainted with the working of the Siamese system. Siam was well represented at the Conference by her two delegates, Phya Srivisar Vacha, the Under-Secretary of State at the Ministry of Foreign Affairs, who successfully presided over the Conference, and Prince Vivat, Director-General of the Revenue Department, who put the Siamese case and views in the discussion with clearness and ability.

In conclusion, must express my indebtedness to our Minister at Bangkok, Mr. Cecil Dormer. His help throughout was of the greatest value to me.

I have, &c.,

MALCOLM DELEVINGNE.

55

No. 31.

C. 92871/32 [No. 17].

COLONIAL OFFICE to BRITISH NORTH BORNEO COMPANY.

SIR,

[Answered by No. 39.]

I AM directed by Secretary Sir Philip Cunliffe-Lister to transmit to you, for the

Downing Street, 15th April, 1932. information of the British North Borneo Company, two copies of a letter from the Secretary-General of the League of Nations of the 6th of February (C.L. 16, 1932, XI),* two copies of the Agreement and Final Act of the Bangkok Conference (C. 90, M. 36, 1932, XI),* two copies of the Declaration in regard to the Illicit Traffic in Opium (Conf. O.F.B. 35),* and two copies of the Report on the Bangkok Conference submitted by Sir M. Delevingne to the Foreign Office.

2. The Agreement signed at Bangkok will be ratified by His Majesty's Govern- ment in the United Kingdom and Sir Philip Cunliffe-Lister trusts that it will not be the wish of the British North Borneo Company that at the moment of ratification His Majesty's Government in the United Kingdom should make a Declaration under Article V excluding the State of North Borneo from the operation of the Agreement.

I am, &c.,

C. 92871/32 [No. 18].

(No. 109.)

SIR,

No. 32. HONG KONG.

H. B. COWELL.

THE SECRETARY OF STATE to THE GOVERNOR. [Answered by No. 44.]

Downing Street, 16th April, 1932.

I HAVE the honour to transmit to you three copies of a letter from the Secretary-General of the League of Nations of the 6th of February (C.L. 16, 1932, XI),* three copies of the Agreement and Final Act of the Bangkok Conference (C. 90, M. 36, 1932, XI),* three copies of the Declaration in regard to the Illicit Traffic in Opium (Conf. O.F.B. 35),* and two copies of the Report on the Bangkok Conferencet submitted by Sir M. Delevingne to the Foreign Office.

2. Hong Kong was represented at the Bangkok Conference, and you have no doubt already received full information as to its proceedings. In view of the full comments which are now enclosed in Sir M. Delevingne's report, it is unnecessary for me to comment at any length on the proceedings of the Conference. The Agreement signed at Bangkok will be ratified by His Majesty's Government in the United Kingdom, and I am assuming that it will not be necessary for His Majesty's Government in the United Kingdom at the moment of ratification to exclude Hong Kong under the provisions of Article V.

3. So far as I am aware, the only Article in the Agreement which may give rise to some difficulty in Hong Kong is Article 1. Under that Article I consider that it will be necessary for the Hong Kong Government to establish Government shops for the sale of opium. In paragraph 9 of the enclosure to your despatch, No. 229 of the 13th of May, 1931,‡ you indicated that this would entail considerable expense. I do not think that the increased cost is a sufficient reason for not adopting in Hong Kong, at an early date, the system of sale from Government shops only which has been enforced throughout Malaya for some years, or that it can be pleaded simply on account of the expense that local circumstances in Hong Kong make the establishment of Government shops difficult.

4 Article IV of the Agreement will allow of the supply of prepared opium from the Singapore factory to Hong Kong. I am of opinion that it is desirable that special arrangements should be made as soon as convenient. I understand that the matter was discussed between the Hong Kong and Malayan representatives at the Conference, and I shall be glad to learn in due course what decisions have been reached. It will later be necessary to invite the Government of India to allow Hong Kong's quota of Indian opium to be sent to the Singapore factory.

* Not printed here.

+ No.30.

‡ No. 17.

PUBLIC RECORD OFFICE, LONDON,

ALLY WITHOUT PERMISSION OF THE BF REPRODUCED PHOTOGRAPHIC-

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