CO129-341 - Acting Governor May Governor Lugard - 1907 [7-10] — Page 381

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376

Shanghai, 2nd. August, 1907.

Opium Monopoly.

With reference to the several interviews

which the representatives of the Sassoons had with you, on our behalf regarding the above important subject, we now beg to

enclose a translation of the letter which our Chinese dealers

have addressed to us, from which you will observe that if the

Monopoly comes into force they may not be able to fulfil their

outstanding contracts with us as their Opium will not have the

same outlet as hitherto. Their previous purchases of opium

which are yet uncleared, now stand at about 2,500/3,000 chests

of the value of about two million taels.

Since the monopoly question sprang up the

market has been slumped to the extent of about Tls. 70 per

chest, notwithstanding the reduction of sale by the Indian

Government of 400 chests monthly commencing from last month,

which should have had the contrary effect.

The considerable losses which we have

already suffered and the further heavy losses which are likely

to accrue on our large holdings if the monopoly is allowed to

be enforced, have resulted from the action of the Chinese

Government which is in direct contravention of Article V of the

Treaty of Nanking of 1842 and Article XIV of the Treaty of

Tientsin of 1858 between France and China and which is calculat-

-ed to ruin the trade in Foreign opium with the intention

apparently of pushing the consumption of native drug.

In view of the above facts, we consider

that it would be only just that we should be indemnified by the

Chinese Government for the losses which we have had to bear,

and for any subsequent losses which may arise if immediate

action is not taken to abolish the monopoly. The intention of

the

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