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PUBLIC RECORD OFFICE

Reference :--

C.O.882/1

PUBLIC RECORD OFFICE, LONDON

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

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(vi) That the interested Powers, that is, the Powers having territories in the Far East where the consumption of prepared opium is still permitted, should conclude an agreement among themselves to apply the foregoing measures for the purpose of carrying out Chapter II of the Convention.

(vii) That the position should be generally reviewed periodically by the Powers interested and the question of further reducing the maximum limit fixed in the agreement should be considered.

*

44411/23.

No. 10.

COLONIAL OFFICE to BRITISH NORTH BORNEO COMPANY.

Downing Street, 27th September, 1923. SIR,

WITH reference to the semi-official communication of the 5th of June,* from this Department to Mr. Pearson, I am directed by the Duke of Devonshire to transmit to you, for the consideration of the Court of Directors, the accompanying copies of the Report to the Council of the League of Nations on the work of the Fifth Session of the Advisory Committec on Traffic in Opium, which was held in May and June last. together with copies of the Minutest of the Session. The Report was considered by the Council of the League, who instructed the Secretary-General to communicate the Report to the Governments of all States Members of the League, expressing the hope that they would give such consideration to it as will enable their representatives to take the necessary action at the Assembly now in session to make the recommendations of the Advisory Committee effective. His Grace is informed that there is little doubt that the recommendations of the Advisory Committee will be accepted by the Assembly.

2. In this event it is anticipated that the proposed Conference of Powers with Far Eastern territories, which was recommended in the second resolution; adopted by the Advisory Committee, will take place probably in the summer of next year.

3. In connexion with this resolution I am to remind you (for convenience of reference) that the text of Article 6 of the International Opium Convention. 1912. is as follows:-

"The Contracting Powers shall take measures for the gradual and effective suppression of the manufacture of internal trade in, and use of prepared opium, with due regard to the varying circumstances of each country concerned, unless regulations on the subject are already in existence.”

4. His Grace is aware that the measures which have already been taken in North Borneo for the control of the manufacture, trade in. and use of prepared opium, comply in a large measure with the requirements of the Convention. It has, however, been represented to His Grace that, in the system of control in force in North Borneo (in common with other British Colonies and Protectorates in the Far East), ultimately the only effective checks on the amount of opium which may be consumed are (1) the high price of the commodity and (2) the fluctuations of demand, determined by the pur- chasing power of consumers; and that it is difficult to defend the continuance of such a system in territory under the protection of a Power which claims an effective obser- vance of the Convention. His Grace is compelled to agree that these observations have considerable force, and that accordingly the present position cannot be regarded as satisfactory.

5. With a view to determining what further measures can be taken to give a more effective application to Chapter II of the Convention, His Grace has urged the Governors of Hong Kong and the Straits Settlements to give the fullest possible con- sideration to the suggestions of the Advisory Committee, and he would be glad if the Court would issue similar instructions to the Governor of North Borneo. The second resolution which, it will be observed, was proposed by the British Representative, indicates the lines along which, in the view of His Majesty's Government further pro- gress in the control of the use of prepared opium would have generally the best prospects of success.

6. For this purpose the Governor will probably find it convenient to appoint a local Committee to assist him in examining the existing position and to explore the possibilities of further effective action,

25005/23: not printed.

† Not printed here.

Annexure to No. 9.

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7. His Grace is fully alive to the fact that in a matter such as this, affecting as it does a large proportion of the Chinese population of the territory and them alone, the success of any measures which may be adopted is very largely dependent on the willing co-operation or at any rate the acquiescence of the Chinese themselves. It is therefore important that they should realize and understand the nature of the obliga- tions which are incumbent on His Majesty's Government as a signatory of the Opium Convention. For this reason as well as for the value of their views, having regard to their special interests in the question, I am to suggest that the Governor might be invited to consider the desirability of inviting one or more prominent Chinese to serve on any Committee, which it may be decided to appoint. Similar suggestions are being made to the Governors of Hong Kong and the Straits Settlements.

8. On the suggestions which form part of the Advisory Committee's second resolution, 1 am to offer the following observations:-

(1) Requires no comment.

(II) This policy was adopted in the Federated Malay States some time ago; the Governor of Hong Kong has also recently agreed to do so; and inasmuch as it would not materially change the present policy of the Company, His Grace hopes that the Court will see no objection to its adoption in North Borneo. The change will neces- sarily take a little time; but His Grace suggests that it would be well to proceed with it at once, as, apart from the consideration mentioned in the Advisory Committee's resolution, the complete elimination of the private trader would. in His Grace's opinion, greatly reduce the difficulties to be faced when further progressive measures for the control of the use of opium are undertaken.

(III) Is attractive, if for no other reason than that its general adoption under the ægis of the League of Nations would at once remove one of the grounds on which attacks on the Far Eastern Colonies and Protectorates have from time to time been made by ill-informed persons or Societies. His Grace is, of course, aware of the diffi- culties in the way of the adoption of a policy involving an arbitrary restriction of the amount of Government opium placed on sale, where hoarding and profiteering are possible. Given, however, a systein of complete Government control over retail sales and possibly some form of registration of consumers, these difficulties would no doubt be considerably lessened. At any rate the Advisory Committee's suggestion is well worth sympathetic consideration.

(IV) The British Representative had hoped to be able to propose definitely at the meeting of the Advisory Committee that the interested powers should be recom- mended to adopt a system of registration and licencing of opium smokers; but His Grace did not feel justified in assenting to such a proposal on behalf of the Governments of the Far Eastern Colonies and Protectorates until it had been carefully considered by the Governments concerned.

He consented, however, to Sir Malcolm Delevingne raising the question of regis tration of smokers, in the form in which it appears in the Committee's resolution, because he is convinced that if some such system could be devised which could be effectively administered at a reasonable cost and without unduly antagonising the Chinese population, a great step would have been taken towards the really effective control of the use of the drug. His Grace trusts, therefore, that the local Committee, the appointment of which has been suggested. will examine the question with care and without prejudice.

As the Court is no doubt aware opium smokers are already registered and licensed in various territories in the Far East, notably in the Netherlands East Indies, and His Grace would suggest that the system in operation there should be carefully studied. His Grace realises that the conditions in the Netherlands East Indies are not altogether comparable to those in the Company's Territory, but they are probably not so dis- similar that the experience of the Netherlands East Indies Government will not he of considerable value to the Government of North Borneo.

(V) Will, no doubt, he duly considered by the Court.

(VI) and (VII) Require no comment.

9. In order to be able to take an effective part at such a Conference as that proposed by the Advisory Committee, it is essential that the British Delegation should be fully acquainted with the local conditions of the Far Eastern Colonies and Protec- torates so far as they affect the due observance of the Convention, and with the views of the Governments concerned as to what measures for the more effective observance of Part II of the Convention, are practicable in their respective territories.

I am accordingly to request that immediate steps may be taken to examine the Advisory Committee's suggestions in relation to the conditions obtaining in North