This Document is the Property of His Britannic Majesty's Government.]
C.O.
# CHINA TRADE
## CONFIDENTIAL
[17479]
No. 1.
691
[May 21.1908]
SECTION I
(£15 JUN 08)
Sir,
China Association to Foreign Office.-(Received May 21.)
159, Cannon Street, London, May 20, 1908.
I AM directed by my Committee to inclose herewith, for the information of His Majesty's Secretary of State, a copy of the Association's letter of the 20th instant to His Majesty's Under-Secretary for the Colonies on the subject of the closure of the opium houses in Hong Kong.
I have, &c.
(Signed)
C. GRENVILLE ALABASTER, Secretary.
Sir,
Inclosure 1 in No. 1.
China Association to Colonial Office.
159, Cannon Street, London, May 20, 1908.
I HAVE the honour to submit, for the consideration of the Secretary of State, a telegram from the Hong Kong branch of this Association, based upon reports which have reached the Colony of a recent debate in the House of Commons on the opium question as affecting Hong Kong:-
"Press telegram states British Government announces in House of Commons intention issue immediate orders Hong Kong Government to close opium houses forthwith. This would impose considerable financial hardship, as, owing to opium farmers' contracts not expiring until February 1910, it would apparently involve payment of large compensation, in addition to prospective loss of revenue. Unfair to dislocate Colony's finance so suddenly. Urge you to represent need of proceeding less drastically; time is required for gradual readjustment of burden of taxation."
This telegram expresses a feeling of alarm with which my Committee have full sympathy, inasmuch as they feel that a sudden closure of the opium houses would dislocate the Colony's finances at a time when it is ill prepared to withstand such a blow, and in this connection I have the honour to inclose a Memorandum dealing with the trade depression existing at present in Hong Kong.
From the report of the debate in the House of Commons on the 6th instant there appears reason to hope that the fears expressed in the telegram may be exaggerated, as Colonel Seely is reported to have said that--
"When it was a case of our own morals and other people's money that made all the difference. He hoped that his honourable friend would agree that they could not do all at once, and although he was able to state that it was intended to take action, he hoped that his honourable friend would not be disappointed if it was not sudden action, in view of the difficulties of arranging revenue."
It may not, however, be inappropriate to offer some expression of my Committee's views on the matter.
It is submitted that, in view of the fact that the opium monopoly in the Colony is farmed out for a period of three years, of which nearly two-thirds is at present unexpired, any sudden closing of the opium houses would involve not only a breach of contract which would conceivably mean ruin to the opium farmer, but a great financial loss on the Colony, nearly one-quarter of the Colonial revenue being derived from opium; heavy loss would, moreover, be caused to all the opium dealers and owners of divans, who would assuredly clamour for compensation. And beyond the question of loss to the colonial revenue and of breach of contract with the natives, there is the question of loss which would fall on British subjects engaged in the opium trade--
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This Document is the Property of His Britannic Majesty's Government.]
C.O.
CHINA TRADE.
CONFIDENTIAL.
[17479]
No. 1.
691
[May 21.31605
SECTION L
(£15 JUN 08)
Sir,
Chipa Association to Foreign Office.-(Received May 21.)
159, Cannon Street, London, May 20, 1908. I AM directed by my Committee to inclose herewith, for the information of His Majesty's Secretary of State, a copy of the Association's letter of the 20th instant to His Majesty's Under-Secretary for the Colonies on the subject of the closure of the opium houses in Hong Kong.
I have, &c.
1.
(Signed)
C. GRENVILLE ALABASTER, Secretary.
Sir,
Inclosure 1 in No. 1.
China Association to Colonial Office.
159, Cannon Street, London, May 20, 1908.
I HAVE the honour to submit, for the consideration of the Secretary of State, a telegram from the llong Kong branch of this Association, based upon reports which have reached the Colony of a recent debate in the House of Commons on the opium question as affecting Hong Kong:-
"Press telegram states British Government announces in House of Commons intention issue immediate orders Hong Kong Government to close opium houses forthwith. This would impose considerable financial hardship, as, owing to opium farmers' contracts not expiring until February 1910, it would apparently involve payment of large compensation, in addition to prospective loss of revenue. Unfair to dislocate Colony's finance so suddenly. Urge you to represent need of proceeding less drastically; time is required for gradual readjustment of burden of taxation."
This telegram expresses a feeling of alarm with which my Committee have full sympathy, inasmuch as they feel that a sudden closure of the opium houses would dislocate the Colony's finances at a time when it is ill prepared to withstand such a blow, and in this connection I have the honour to inclose a Memorandum dealing with the trade depression existing at present in Hong Kong.
From the report of the debate in the House of Commons on the 6th instant there appears reason to hope that the fears expressed in the telegram may be exaggerated, as Colonel Seely is reported to have said that--
f
When it was a case of our own morals and other people's money that made all the difference. He hoped that his honourable friend would agree that they could not do all at once, and although he was able to state that it was intended to take action, he hoped that his honourable friend would not be disappointed if it was not sudden action, in view of the difficulties of arranging revenue."
It may not, however, be inappropriate to offer some expression of my Committee's views on the matter.
It is submitted that, in view of the fact that the opium monopoly in the Colony is farmed out for a period of three years, of which nearly two-thirds is at present unexpired, any sudden closing of the opium houses would involve not only a breach of contract which would conceivably mean ruin to the opium farmer, but a great financial loss on the Colony, nearly one-quarter of the Colonial revenue being derived from opium; heavy loss would, moreover, be caused to all the opium dealers and owners of divans, who would assuredly clamour for compensation. And beyond the question of loss to the colonial revenue and of breach of contract with the natives, there is the question of loss which would fall on British subjects engaged in the opium trade--
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