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by degrees of an immense internal production and a comparatively small import The principle of pari passu reduction being accepted, the choice of procedure a regards the import trade lay between restriction by treaty or restriction by the voluntary action of the Indian Government. The Chinese Government accepted the latter as being simpler, more certain, and more expeditious. It is not alleged th the Indian Government have not scrupulously adhered to their undertaking. It has still to be proved at the end of 1910 that China has been able to perform her part of the engagement. On the basis of a pari passu reduction-a principle to which exception has not been taken--no present cases exists for modification of the treaties The treaties do not fetter China in respect of the suppression of the production of Office or Individual. opium, or of the regulation of consumption, whether of native or imported opium They merely protect the wholesale dealer against action which in the present stage o the opium question in China would either promote the sale and stimulate production of native opium or create monopolies in favour of individuals.
the Foreign.
1909
It may be said, in conclusion, that not only the Government of India, but als the chiefs of native States and the Indian producer and trader have been called upor to make considerable sacrifices in the effort to co-operate loyally and generously with the Chinese Government in reforming a state of things in China for which they at most are only partly responsible. The effort has been warmly appreciated by the 29th Decr Chinese Government, and has stimulated it in its great enterprise.
I am to request that you will bring the above observations to the notice of you Last Previous Paper.
committee.
I am to add that both Sir E. Grey and Lord Morley are of opinion that it is
policy of doubtful expediency to disparage and hold of no account what has been 41443 done, and to press for a reopening of the case before a fair trial has been given to engagements voluntarily concluded by the responsible Governments.
I am, &c.
F. A. CAMPBELL.
R
42109
Affairs of China. China Railways.
Mr. Shills
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corres
? Punts & sokong sin R7%/10
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