CO129-330 - Public Offices - 1905 — Page 287

This Document is the Property of His Britannic Majesty's Government

RECO

1380

(Aro 16 JAN 05]

CHINA TRADE.

CONFIDENTIAL.

No. 1.

[December 22.]

28L

SECTION 1.

India Office to Foreign Office.--(Received December 22.)

India Office, December 21, 1904.

Sir,

WITH reference to your letters of the 16th and 22nd November, 1904, on the subject of a scheme under the consideration of the Chinese Government for the creation of an opium monopoly in China, I am directed by the Secretary of State for India ia Council to say that he has consulted the Government of India as to whether they would be willing to consider the proposal stated in Sir E. Satow's telegram of the 9th November if it were put forward officially by the Chinese Government.

The Government of India will be prepared to give consideration to any proposals of the kind indicated in Sir E. Satow's telegram which the Chinese Government may desire to put forward through His Majesty's Government. They are unable, however, to commit themselves in any way beforehand to an acceptance of the principle of the scheme, as they at present have not the materials for forming a judgment as to how it would be likely to work in practice, or to affect the relation in which Indian opium slands in China towards the native product. Much would depend on the terms of the Agreement for the purchase of Indian opium which might be offered by the Chinese Government, its proposed duration, the minimum number and price of the chests to be annually taken, the arrangements as to Malwa opium, and other similar details. Much, also, would depend on the Regulations for the internal working of the opium monopoly by the Chinese Government, and on the conditions under which the retail vend of foreign and native opium would be conducted. Questions of Treaty rights would also be involved, which might require careful examination.

I am to suggest that if the Chinese Government wish to proceed officially with the scheme, it may be intimated to them that their proposals should be accompanied with such details on the above and on other points as will enable the Government of India and the Secretary of State for India in Council to arrive at definite conclusions

upon it.

In case the Chinese Government should decide to act on this suggestion, the advice of the British Consular Representatives in China on the provisions of the scheme, and their opinion as to how it would affect the consumption of foreign opium in China, would be helpful, if they could be consulted without risking the premature disclosure of the proposals.

I am, &c. (Signed) HORACE WALPOLE.

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