CO129-349 - Governor Sir Lugard - 1908 [10-12] — Page 487

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necessity hamper trade and prevent the free buying and selling of raw Indian opium.

The British firms interested contend therefore that the new regulations from the nucleus of a monopoly which will place the control of the raw opium trade in the Two wang Provinces in the hands of a few individuals of in the hands of the Provincial Goverment itself.

I have the honour to point out to Your Excellency that the restrictio" on trade contemplated by these new regula- tions is directly contrary to Article V of the Treaty of Nanking by which Briti sh merchants are permitted to carry on their mercantile transactions with whatever persons they please". By Article X of the same Treaty "such merchandise may be conveyed by Chinese merchants to any Province or city in the interior of "the Empire of China", and by Article XIV of the French Treaty of Tientsin it is clearly laid down that "aucune societe de commerce privilegice ne pourra desormais s'etablir en Chine,et 'il en sera de mere de toute coalition organisee dans le but d'exercer une monopale sur la commerce".

I would remind Your Excellency that last year an attempt was made at Nanking to create a similar monopoly and that in this case the Central Government, upon representations of His Majesty's Minister to the Faiwupu, fully recognised its illegality and ordered the measure to be withdrawn.

I would further remind Your Excellency that the Indian Government is co-operating with the Government of China in its efforts to suppress the use of the drug by reducing the amual export of opium from India. This of itself will autom- atically bring about the total suppression of the import of Indian opium within a period of ten years. It is therefore not contrary to Treaty but totally unnecessary to adopt these harsh measures to restrict the sale of Indian opdum in Canton.

Under these

circumstances I feel it my duty to

bring the protest of the British firms interested to Your Excel- -lancy's notice and to request Your Excellency will give in-