CO129-353 - Public Offices - 1908 — Page 759

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My opinion is that the British Government wants to assist China in reducing the use and consumption of opium by gradually and annually reducing the amount put on the market.

What the Hong Kong merchants in effect say is: "So much opium may be sold in China during the next ten years; how much or how little is sold in any one year is immaterial." I do not think the principle of the British Indian Government justifies our adopting that view. If so, one would argue that if the growing disuse of opium in China--say, during the next three or four years--made it possible that the Indian Government's quota in any one year was not required by the market, the amount to be sold by it in succeeding years might be increased proportionately. I hardly think such can be intended by the British or expected by the Chinese Governments.

You check Indian export; we try to follow your lines as far as we can, mutatis mutandis, by checking non-Indian import. I am afraid if I go beyond my instructions to Mr. Harris I shall open the door to questions from the Chinese, and, perhaps, abuses otherwise, and I myself feel I would be wrong in doing so.

Sir,

Yours sincerely,

(Signed)

ROBERT E. BREDON.

Inclosure 3 in No. 1.

Mr. Hillier to the Kowloon Commissioner.

Inspectorate-General of Customs, Peking, November 17, 1908.

I AM directed by the Inspector-General to acknowledge receipt of your despatch No. 6476, forwarding copy of correspondence between Messrs. Sassoon and other firms and yourself, having reference to the Regulations for the restriction of importation into China of opium other than Indian, and requesting instructions on certain points raised by these firms with respect to the transfer of stocks to China, and the duration of the permits to be issued; and, in reply, to state as follows:-

(a.) Stocks.

The Inspector-General does not see any objection to the transfer, before the end of the current year, of a certain quantity of non-Indian opium to Amoy and Foochow, to be stored there in bond under Customs supervision. Provided we have godown accommodation at those ports it may be used for this purpose, and storage fees will be waived under certain conditions, e.g., that the opium does not remain in bond beyond a given time. But, if a building has to be specially hired by the Customs for the storage of opium so transferred, the importers will be expected to defray any outlay incurred. It should also be made clear to them that we can accept no responsibility as regards loss of, or damage to, any opium stored under bond, which must be insured by the owners, and handled exclusively by them or their agents.

You may communicate with your colleagues at Foochow and Amoy, and request their co-operation in this matter, quoting this despatch as your authority. Any reasonable arrangements made that meet the wishes of the importers, and at the same time secure proper Customs supervision, will be approved.

With regard to

(b.) Duration of Permits,

the Inspector-General is of opinion that the rules deal primarily with the number of permits issued during any one year; if the question were only a revenue one their duration would be of secondary importance. He does not take the rules as meaning that so much opium can be imported during the years 1909-1916, and that it is immaterial how much or how little is imported in any one year. He is disposed to admit the reasonableness of the argument advanced by the firms interested, that the validity of permits might be extended beyond the end of the year of issue for merchants' convenience, and thinks that the difficulty might be solved by allowing permits issued in any particular year to be available for presentation at ports during a certain number of months--say, three--in the following year. It is understood, however, that permits will not be applied for or issued until the opium they are intended to cover is actually on hand and ready for shipment to China.

Sir,

I am, &c.

(Signed)

H. M. HILLIER, Chief Secretary.

Inclosure 4 in No. 1.

Sir J. Jordan to Governor Sir F. Lugard.

Peking, November 25, 1908.

ON receipt of your Excellency's despatch of the 2nd instant, I inquired of the Acting Inspector-General of Customs whether he could see his way to granting the request of the Hong Kong firms engaged in the Persian opium trade, not only that a period of grace should be allowed to shipments made at the end of one particular year to enter China during the course of the ensuing year, but also that any permits unused in one particular year should be available until the end of 1916.

From his reply, with inclosure, copy of which is forwarded herewith, you will perceive that Sir Robert Bredon is disposed to allow a period of three months' grace at the beginning of a year, during which permits issued in the course of preceding year shall be allowed to enter, but that he considers that he would be violating the spirit and intention of the rules by allowing unused permits to be utilized at any time before the end of 1916.

It appears to me that the view taken by the Acting Inspector-General of the meaning of the arrangement is correct, namely, that it provides for an annual decrease in the amount of opium imported, and is not merely intended to limit the amount which can be imported during a period of ten years, irrespective of the shipments made in any one year of the decennial period. The undertaking entered into by the Chinese Government is to diminish the sale and consumption of opium by one-tenth every year, until such sale and consumption shall have ceased, and such an undertaking would be seriously hampered if importers obtained the right to introduce into China stocks in excess of the amount allowed in the previous year, less one-tenth.

I have, &c.

(Signed)

J. N. JORDAN.