CO885-11 — Page 608

602

וויי!

PUBLIC RECORD OFFICE

ठा

Reference :-

C.O.882/11

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

PUBLIC RECORD OFFICE, LONDON

27130,24.

No. 24.

STRAITS SETTLEMENTS.

THE SECRETARY OF STATE to THE GOVERNOR.

(Sent 3.40 p.m., 27th June, 1924.)

TELEGRAM.

[Answered by No. 29.]

FOLLOWING from Pountney. Begins:--Reference separate telegram* from Colonial Office regarding gradual total diversion of opium monopoly profits from general revenue. I wish to offer following observations. Have always held cessation of opium revenue would result in dislocation of Colony finances for ten years. Proposal now made would reduce this dislocation to minimum but I consider that replacement even in ten years will be very difficult in Colony. My opinion major factor in replacement must be income-tax and it is necessary to contemplate at end of ten years possibility of tax reaching as high as 3s. in the pound. So high a rate would result in great evasion and might also drive trade away. In Federated and Unfederated Malay States extension of import duties difficult and burdensome, probably necessary also have recourse to income-tax to replace opium revenue and certainly inadvisable to have high income-tax in Colony if no such tax in neighbouring territories. In view of extra difficulties of collection of income-tax in Protected States probably necessary have high rate there also if income-tax in those States is to be an important factor in replacement. Proposal coupled with undertaking to take steps proposed in Malaya Committee Report probably form policy acceptable to League but necessary to examine practical aspects if diversion proposal accepted. Difficult to contemplate objects on Not possible to apply fun:1 which the created fund could be expended.

to services which would involve upkeep with threat of eventual prohibition Failure to spend funds unless fund also provides permanent endowment. probably be adversely commented on by League and result in no improvement of position. If diversion proposal is accepted by you recommend you should hold out for permission to reserve portion of special fund to cover cost of Preventive Service after prohibition enforced. Gather British Representative prepared to agree to longer ime for complete diversion in Federated and Unfederated States owing to effect of slump on their present resources and greater difficulty of replacement but personally fear if he makes the proposal at all at the Conference he will find it difficult to maintain differentiation.

Consider matter important enough to justify appointment of strong Committee to consider whole question of replacement revenue. Report should be ready by my arrival end of August. This would help in discussion with you regarding instructions to Beatty-Ends.-THOMAS.

31293/24.

No. 25.

STRAITS SETTLEMENTS.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 4.15 p.m. 1st July, 1924.)

CONFIDENTIAL.

TELEGRAM.

Please inform 1st July. Your telegrain of 27th June.* Pountney he should return to the Colony at the expiration of his leave. Beatty will wait to confer with Pountney in Singapore and then proceed home to attend the Conference.

* No. 23.

31518/24.

No. 26.

SIR M. DELEVINGNE (HOME OFFICE) to SIR G. GRINDLE (COLONIAL OFFICE).

(Contidential.) DEAR GRINDLE,

[Answered by No. 32.]

Home Office, Whitehall. S.W.J, 1st July, 1924.

I HAVE prepared the enclosed draft of a Memorandum for submission to the Cabinet on the question of the policy to be adopted by the British Government at the Far Eastern Conference in November. You will see that we have come to the con- clusion here that the right policy is prohibition after a fixed period of grace. We hope the Colonial Office will be able to take the same view It is really the only honest solution if registration and rationing are impossible. It rids us of embarrassments and puts us in a far better position diplomatically. The matter is becoming urgent, as we ought to get a decision out of the Cabinet before they separate for the holidays.

I am sending a copy of the draft to Waterlow at the Foreign Office for his information.

Yours sincerely,

MALCOLM DELEVINGNE.

P.S.-I should prefer not to say anything to the India Office until we have discussed the subject between ourselves.

(Secret.)

1.

Enclosure in No. 26.

INTERNATIONAL OPIUM CONFERENCE, NOVEMBER, 1924.

DRAFT MEMORANDUM FOR CABINET.

In November next, in pursuance of a Resolution unanimously adopted by the Assembly of the League of Nations at its meeting last September, an International Conference will be held at Geneva, under the auspices of the League, to consider what measures can be taken for giving effect to Chapter II of the International Opium Con- vention which provides for the " gradual and effective suppression" of the use of opium for smoking.

The Conference will consist of representatives of those States in whose territories the practice of opium smoking still continues, and of China.

Opium smoking is permitted under regulation in several British possessions, more especially in Hong Kong, Straits Settlements, and the Malay States, North Borneo, Sarawak, and Burmah, and His Majesty s Government have accepted the invitation of the Council of the League to be represented at the Conference. The other States concerned are France (in respect of Indo-China), the Netherlands (in respect of the Dutch East Indies), Portugal (in respect of Macao). Siam and Japan (in respect of Formosa and the leased territory of Kwantung).

The Conference is the outcome of the proceedings at the meeting of the Opium Advisory Committee of the League of Nations in April. 1923, in which a delegation from the United States Government took part-and though the United States Govern- ment will not be themselves represented at the Conference as opium smoking has been officially prohibited in the Philippines (their only territories in the Far East) it is known that they take a very lively interest in it.*

2. The Opium Advisory Committee at its meeting last year adopted, on the motion of the British Representative, the Resolution of which a copy is annexed.

That Resolution embodies certain suggestions, which were put forward after con- sultation between the Home Office and Colonial Office, as to the measures that might be taken into consideration by the proposed International Conference, for bringing about the "gradual and effective suppression " of opium smoking to which the Parties to the Opium Convention are pledged. This was done in order that all the States. concerned might have ample opportunity for examining the suggestions, but neither the British Government nor any other Government was committed by the Resolution

They will be reprosented at a subsequent and larger Conference which has also been summoned by the League for November next, to consider the question of the limitation of the manufacture of morphine, heroin, and cocaine and the production of raw opium and the coca leaf from which the drugs are obtained.