CO129-360 - Public Offices - 1909 — Page 366

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le commerce. En cas de contravention du présent Article, les autorités chinoises, sur les représentations du Consul ou de l'Agent Consulaire, aviseront aux moyens de dissoudre de semblables associations, dont elles s'efforceront d'ailleurs de prévenir l'existence par des prohibitions préalables, afin d'écarter tout ce qui pourrait porter atteinte à la libre

concurrence."

We would wish to lay special stress upon the fact that by the Regulations now sought to be enforced by China, the right allowed by Treaty to all merchants, whether British or otherwise, to sell their opium to any one, is taken away, and that the Société de Commerce privilégée," as quoted above, has been practically brought into existence again; thus reviving an abuse which led to misunderstandings between the European Powers and China, and against which the Treaties of that period were especially intended to safeguard free trade in the future.

We submit that if Article 5 of the Edict is carried out, in course of time, the number of dealers in raw opium will dwindle to a very small number, healthy competition will cease, and the British merchant will be at the mercy of the few native shops left in the trade.

Inasmuch as the Indian opium trade has already been regulated by the Government of India and will, under the conditions agreed up by Great Britain and China, entirely cease in the course of ten years, there is absolutely no reason whatever for the Chinese Government to interfere in any way with this trade by issuing vexatious notifications to the public, as has been done lately by the Viceroy of the Two Kwongs. Therefore, any interference on the part of the Chinese Government with the Indian opium trade cannot possibly be with any legitimate object. Provincial authorities all over the Empire are quite capable of using the Imperial Edict as a pretence for the purpose of raising revenue, or with the ulterior object of taking advantage of the situation in order to be able to squeeze the populace. We have only in this regard to refer to the recent action of the Viceroy of Nanking in order to show how far this can be carried into effect by unscrupulous authorities.

The merchants in China have a very strong claim on the British Government to protect their trade against this interference by the Chinese, not only the ordinary protection due to legitimate British trade, but from the fact that the merchants buy direct from the Government of India at the Government's monthly sales in Calcutta, and it is the duty of the British Government to see that the merchants get a fair and unhindered outlet for the opium purchased direct from them.

It is incumbent on the British Government, before they allow the opium trade to depart entirely from India and from British merchants dealing with the Indian Govern- ment, to see that China is really doing her share to eradicate the so-called evil.

The Report of Mr. Leech clearly shows that the British Government is keeping well abead of the Chinese Government in the steps taken to stamp out the opium habit, although British trade is only one-eighth to one-tenth of the whole of the opinm consumed in China

The production in China of native opium being eight to ten times as large as the total import of the foreign drug, the cultivation of China opium is the thing to watch, not so much the foreign trade, and the only way to stop opium smoking in China is by getting the provincial authorities to curtail the production of the native drug, otherwise, while our trade will dwindle, Chinese opium will flourish, and derive the benefit of the falling off of British trade, and this is surely what the Chinese provincial officials desire, and in this regard we would call attention to Sir Edward Grey's despatch to Sir M. Durand, dated the 17th October, 1906, where he says:----

"If, on the other haud, China was simply to prevent the importatian of foreign opium in order that individual Chinese might grow more opium themselves and realize £ higher price for it in China, then it would be useless for us to make sacrifices."

"Us" there means Great Britain, or in other words, the Government of India aud Great Britain's merchants dealing in raw opium.

We would wish that it should be pointed out to the British Government that it is a known fact that China not only consumes ten times as much more opium than is imported into China, but she also exports China-grown opium to Hong Kong, Saigon, Singapore, Bangkok, and other places.

Mr. Leech, Councillor at the British Legation, in his second Report on the opium question states:—

"Since the end of November 1907, when the previous General Report on the anti-opium movement was written, the two most noticeable features have been the

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continued interest and energy shown by the Central Government in the question, as compared with the growing apathy evinced by the provincial officials, and their lack of sustained effort to eradicate the evil.”

As the provincial officials are expected to carry out the Edict, their actions are chiefly to be considered, and not the ineffective Edicts issued by the Central Government. We entirely fail to see why His Britannic Majesty's Minister should lay stress on the Opium Edict of the 20th September, 1906, which is merely an Edict, or wish, expressed by the Government of China, and has never, to our knowledge, become a Treaty between the Chinese Government and the British Government. We would point out that Treaties do exist between England and China regarding the former's trade and commerce, and we submit that so long as those Treaties remain unrepealed British merchants trading in the Far East, and, as we have already pointed out, purchasing their merchandize direct from the British Government, should have the protection afforded them by those Treaties.

The result of the two recent attempts by the Viceroy of Nanking and by the Viceroy of the Two Kwongs, to interfere with legitimate trade have on each occasion caused a heavy drop in prices and a falling off in deliveries, resulting in heavy loss to the British merchants and a complete disorganization of the trade in raw opium.

We would emphasize the fact that pressure was brought to bear upon the Viceroy of the Two Kwongs by the energetic action of the Consul-General in Canton so that the Regulations which he sought to enforce throughout the Kwong Tung Province were withdrawn in the city of Canton, yet in other prefectures these Regulations have been brought into force, native dealers in raw opium have been fined and imprisoned by the provincial authorities at Chiu Chow and Wui Chow, thus causing extreme uneasiness amongst the local Chinese, which has prevented them purchasing raw opium, and thus causing a complete disorganization of the trade and a violent decline in prices, resulting in much loss to the foreign merchants and general want of confidence in the future.

Finally, we would wish to point out that British interests are so widely and heavily involved in the opium trade that the whole question should be approached with the utmost gravity. Before the British Government involve themselves in further diplomatic action with the Chinese, conclusive proof should be educed to clearly show that the Chinese authorities are not only well-intentioned, but have taken steps at least proportionately equal to those being taken by way of curtailing the production by the British Government.

It may not be out of place to here give a few of the most important interests connected with the trade which will suffer, and to emphasize the serious blow that will result to British commerce if the opium trade is to cease in the course of a few years:-

1. A loss of over 3,000,000l. to India on the sale of raw opium alone.

2. A heavy blow to British merchants engaged in the trade.

3. A heavy loss to steamer owners, mostly British, as nearly all opium is carried in British bottoms.

4. A beavy loss to Fire Insurance Companies, mostly British, who insure whilst it is stored upon land.

5. A heavy loss to Marine Insurance Companies, mostly British, who insure raw opium whilst it is being carried on ship-board.

6. A great loss to the British trade of Hong Kong and Shanghae and the Treaty Ports, involving indirectly losses to labour, property, and various other interests.

We have, &c.

[2090 dd-1]

David Sassoon and Co. (Limited),

(Signed)

(Per

pro.

E. SHELLING, Manager. E. D. SASSOON AND Co.

S. J. DAVID AND Co.

E. PABANY,

Tata Sons and Co.),

R. W. TATA.

H. M. H. NEMAZEE.

M. II. E. ELIAS.

P. F. TALATI.

COWASJEE, PALLANJEE, AND Co.

(Per pro. Phirosha B. Petit and Co.),

S. D. SETNA.

C

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