CO129-362 - Public Offices - 1909 — Page 407

this document in the Property of to li maydis for

CHINA TRADE.

LOP

30326

[August 13.30 || SEP 09

CONFIDENTIAL.

[30468]

No. 1.

SECTION 1.

405

Messrs. Sassoon and Co. to Sir Edward Grey.~(Received August 13.)

12, Leadenhall Street, London, Sir,

August 12, 1909. WE have the honour to address you on a subject of importance alike to the finances of the Indian Government and to the interests of Indian traders with China,

The arrangement that that Government has entered into with the Chinese Government, whereby the importation of Indian opium is allowed in continuously decreasing quantities until it reaches extinction, does not appear to have received proper recognition from certain Chinese officials, notably from the Viceroy of Nanking, who from time to time has promulgated regulations, the effect of which has been to hamper seriously the internal trade in Indian opinm. Over the local authorities the head Chinese Government exercises apparently only a fitful and ineffective control. The Viceroy of Nanking's object is no doubt to accelerate the reduction in the importation of the foreign drug, and he is likely to achieve his purpose, for the whole Indian opium trade has more than once been completely disorganised by his action.

His British Majesty's Minister at Peking bas on former occasions nude represen- tations to the Chinese Government, and we believe an amendment of past regulations in one or two points has resulted. But we understand from cable received to-day from our Shanghac house that the Viceroy continues his attempts so to control the internal trade by restricting licences that the right of importation, though not actually denied, is indirectly but very effectively obstructed.

For instance, we are advised that the following regulations have been recently put in force:-

1. The members of three associations only are allowed to import and deal in opium, and no new hong is allowed to be opened, thus creating a practical monopoly.

2. The members of these three associations alone have licences to import foreign opium, and the quality, quantity, and name of town from where it is to be imported must be stated on the licences.

3. Dealers are allowed to sell only to those who hold licences of purchase, and in quantities stated thereon.

4. Buyers' licences specify not only the quantity they are allowed to purchase, but also the name of the particular hong from which they must get their supply, and they are not allowed during the time their licence is in force to buy from any other

source.

The Indian Government is dependent on Indian merchants for the sale of opium, and the merchants are dependent on the openness of the Chinese market within the limits prescribed by the arrangement between the two Governments, and we submit that no internal regulations calculated to destroy the freedom of the Chinese market, and consequently the value of the right of importation, should be permitted.

May we beg, therefore, that His Britannic Majesty's Minister at Peking he instructed to enquire into the matter, and if, as we believe will prove to be the case, ample evidence justifying the view we have put forward can and will be produced, that the Minister be further instructed to call upon the Chinese Government to compel its local authorities to observe not merely the letter, but the spirit of the agreement entered into with the Indian Government.

We have, &c.

DAVID SASSOON AND Co.

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