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PUBLIC RECORD OFFICE

Reference :-

PLLC.O.882/11

PUBLIC RECORD OFFICE, LONDON

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

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demand of the registered consumers and vedaralas under the Opium Ordinance No. 3 of 1910.

2. The smoking opium is prepared at the Government Opium Store under strict supervision and it is distributed among certain Government Opium Depots for retail sale to registered smokers. The smoking opium is sold at a higher rate than the raw opium, ie., at the rate of two cents a grain or Rs. 140/- per pound. There are 53 Opium Depots in the Island, out of which the smoking opium is sold only in 17 Depots. 3. In this country when the control of opium was taken over by Government in 1910, all the private opium shops were closed, and in their place Government depots were introduced which were placed in charge of Government Officers, who are paid a fixed salary without any commission on the amount of business done.

4. In Ceylon the sale of smoking opium is confined only to the smokers registered under the Ordinance and the quantities allowed to them were fixed after careful examination by the Medical Officers of the Civil Medical Department. These smokers were allowed quantities of smoking opium varying from 25 grains to 1.600 grains per mensem, and the total quantity required for their use is manufactured from the raw opium imported from India, and distributed among the different Opium Depots by the Government Opium Store. Under these circumstances the third suggestion of the Advisory Committee will not be applicable to this country as the habit of using opium is confined to the national population of the Island. None of the Chinese residents in the Island have registered themselves as consumers of opium.

5. When the registration of opium consumers was first undertaken by Govern- inent in 1910, the registered consumers were allowed to buy both eating and smoking opium without any restriction whatever, and in consequence the sale of smoking opium rose gradually till the year 1914. Steps were taken immediately to restrict the habit of using smoking opium, (1) by not entertaining fresh applications for registration of consumers for smoking opium, (2) by discouraging its use among the consumers by dissemination of literature on the subject, (3) by limiting the quantity of smoking opium in the case of those consumers who were drawing both eating and smoking opium, and lastly by withdrawing the concession of drawing both smoking and eating opium by the same consumer. This last restriction does not apply to the Western Province but will be enforced during the current year.

6. Under the above system the total number of persons who use only smoking opium has decreased from 780 in 1920 to 666 in 1923, but the Government of Ceylon was able to stop altogether the registration of consumers for smoking opium and bring down the sale of smoking opium from 1,807 lb. in 1914 to 566 lb. in 1923; thus showing a decrease of 1,241 lb. in the sale of smoking opium during a period of 10 years or 124 lb. a year.

7. It is settled beyond all doubt that the use of opium for smoking will auto- matically be brought to an end, as provided for by Part 2 of the International Opium Convention of 1912.

8. The enclosures to the copy of despatch from the Secretary of State for the Colonies referred to in your letter under reference are herewith returned.

The Honourable

- The Colonial Secretary.

(No. 536.) SIR,

I am, &c.,

G. J. RUTHERFORD,

P.C.M.O. and I.G.H.

Enclosure 2 in No. 22.

12th May, 1924.

Traffic in Opium.

WITH reference to your letter of the 17th ultimo, on the subject of the traffic in opium, I have the honour to state that with reference to paragraph (1) of the second recommendation of the Advisory Committee, the farm system is not in opera- tion in Ceylon and the opium business is entirely in the hands of this Government,

(2) Re paragraph 2 there are no private shops in Ceylon and all the sales are

made in Government Opium Depots.

(3) Re paragraph 3 there is no Chinese population in Ceylon registered as

opium consumers.

(4) Re paragraph 4 the system of registration and licensing prevailing in Ceylon

has been thoroughly explored and found entirely satisfactory.

2.

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(5) Re paragraph 5 there is a uniform price at which opium is sold throughout the Colony and the penalties provided under the Opium Ordinance for infraction of the law are considered to be severe enough.

(6) Re paragraph 6 that according to the system in vogue in Ceylon the use of opium for smoking must cease automatically in the course of a few years.

(7) Re paragraph 7, provision has been made in the Ordinance for the provision of allowances given to the registered consumers with the object of further reducing the quantities allowed to them and there was a general revision in the year 1921.

The local organization, the details of which were given in my letter No. 394 of the 2nd April last, is successful and I cannot suggest any improvement on it.

3. The report of the Advisory Committee is herewith returned together with a copy of the Opium Ordinance.*

I am, &c.,

G. J. RUTHERFORD,

The Honourable

The Colonial Secretary.

27130/24.

No. 23.

STRAITS SETTLEMENTS.

P.C.M.O. and I.G.H.

THE SECRETARY OF STATE to THE GOVERNOR. (Sent 3.50 p.m., 27th June, 1924.)

TELEGRAM.

[Answered by Nos. 25 and 29.]

CONFIDENTIAL. Reports of the Malaya and Hong Kong Opium Committee have been considered at a Conference of the Colonial Office, Foreign Office, and Home Office. It was felt that if the Government were to accept the general conclusions in the Reports and were unable at the International Conference next November to promise suppression of opium smoking under present conditions, Great Britain would be strongly attacked particularly in America on ground of large amount of revenue derived from opium and used for general purposes in Malaya and Hong Kong. American Government has already put forward the proposal that the Conference should accept the principle that no State should draw any revenue from the control of opium, &c., beyond the expenses incident to the exercise of the control. See my despatch of 24th April. The present position will be difficult to defend unless some special arrangement can be come to. British delegate has suggested that while opium revenue continues, a fixed portion, say 10 per cent. of the whole, should be set aside for humanitarian and social services outside normal expenditure such as extra medical, educational, housing facilities, and the proportion so set aside should be increased by further 10 per cent. of total opium revenue each year. This would divert total revenue from general revenue in 10 years. This proposal would be practicable in Hong Kong. As regards Malaya see Pountney's views in separate telegram. Do you agree to acceptance in principle either by Malaya and Hong Kong alone or contingently on acceptance by other Govern- ments with Far Eastern Possessions also. Strictly we are not concerned with what foreign Governments do in the matter, and when whole subject of opium policy is submitted to Cabinet shortly it may well be held that His Majesty's Government should adopt a policy of their own.

Your despatch of 18th March,§ Pountney's hearing scarcely sufficient for purposes of Conference in November. Would you prefer him to exchange views with Beatty here or in Singapore where he would normally arrive end of August.

This telegram can be communicated confidentially to unofficial members but had better not be published for the present.-THOMAS.

* Not reprinted here.

† 17155/24: not printed.

27130/24: not printed.

§ No. 19.

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