CO129-345 - Public Offices & Foreign Office - 1907 — Page 93

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

C. O.

CHINA TRADE.

33136

[August 29.]

CONFIDENTIAL.

RECP

SECTION 1.

1REGE 16 SEP 07

[28948]

No. 1.

Sir,

Messrs. Sassoon and Co. to Foreign Office.~(Received August 29.)

9, Fenchurch Avenue, London, August 28, 1907. WE have the honour to acknowledge receipt of your letter dated the 23rd instant. We have been in further communication with our Shanghae house, who have advised us by cable that the Viceroy of Nanking has issued a Proclamation to the effect that the monopoly will come into force on the 8th September. The disastrous effect that the establishment of the monopoly will have is clearly shown by the fact that its anticipation has already caused utter dislocation of the trade and losses which it is impossible to estimate.

This is clearly evidenced by the correspondence which we have the honour to submit with this letter, viz., duplicates of a letter addressed by our Shanghae house to His Majesty's Consul at Shanghae, and of a letter from the Swatow Opium Guild to importers of Indian opium. From the latter it is evident that the proposed arbitrary action on the part of the Viceroy has not only already caused enormous loss to direct importers, but has paralyzed the trade to such an extent that, even a month ago, Chinese merchants up country and in the oatports had to admit their inability to fulfil their contracts, This means not only ruin to the Chinese merchants them. selves, but incalculable distress inseparable from the sudden suspension of an important trade.

We beg to submit that the Viceroy's action should be treated as being quite apart from the policy of getting rid of the opium trade altogether, as the proposed monopoly can only be regarded us an attempt to secure the profits of the trade for the Viceroy's Government.

The gravity of the situation for all concerned in the trade in Indian opium cannot be exaggerated, and we beg to represent that, if the Viceroy is permitted to continue in his present course of action, further immense loss will be inflicted on British interests by a proceeding which is not only in direct contravention to existing Treaties between the British and Chinese Governments, but in defiance to all the laws of equity and justice.

We must, therefore, respectfully urge upon His Majesty's Government the utmost necessity of sending instructions by cable to the British Minister in Peking to take such action as will prevent the establishment of the monopoly and further addition to the enormous losses already sustained.

We have, &c.

(Signed) E. D. SASSOON AND Co.

Inclosure I in No. 1.

Messrs. Sassoon and Co. to Consul-General Sir P. Warren.

Shanghae [undated].

WITH reference to the several interviews which the representatives of the Sassoons had with you on our behalf regarding the important subject of opium monopoly, we now beg to inclose a translation of the letter which our Chinese dealers bave 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 2,000,000 taels,

Since the monopoly question sprang up the market has been slumped to the extent of about 70 taels per chest, notwithstanding the reduction of sale by the Indian Government of 400 chests monthly, commencing from last month, which should have bad a contrary effect.

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