CO129-372 - Public Offices - 1910 — Page 300

remain it will form merely the thin edge of the wedge, which will ultimately destroy the Indian opium trade long before the time fixed for its extinction by the recent understanding arranged between His Majesty's and China Governments-to the advantage solely of the Chinese Treasury, at the expense of Indian revenues and British merchants

We have, &c.

This Document is the Property of His Britannic Majesty's Government.]

OPIUM.

E. D. SASSOON AND Co.

CONFIDENTIAL.

298

C

20142

[June 17.]

RECE SECTION 1. REG | JUL 10

(20712)

(No. 211.) Sir,

No. 1.

Sir Edward Grey to Mr. Max Müller.

Foreign Office, June 17, 1910. I REFERRED to the Secretary of State for India your despatch No. 110 of the 20th April last in regard to a complaint made by the Chinese Government that Indian opium at the end of ten years would, in the conditions described in the note from the Wai-wu Pu, still be imported into China, and asked to be furnished with any observa- tions Lord Morley might have to offer on the matter as well as upon the reply returned by you to Prince Ching.

I now transmit to you herewith copy of his Lordship's reply, from which you will see that you have correctly described the nature of the agreement under which the Government of India undertook to reduce, with effect from 1908, the total export of opium from India to all countries beyond seas, and that Lord Morley is anxious to learn whether, should the Chinese Government be disposed to accept the offer made in my despatch No. 132 of the 20th April last of an extension of the agreement for another three years on certain conditions, they would have any practical proposal to make for supplementing the indirect restriction at present enforced by the Government of India, or for substituting for it direct progressive restriction of import at the treaty ports.

You will also observe that if the Chinese Government accept the offer above mentioned, his Lordship would not object to an undertaking being given to them that, if at the end of the ten years period the production of opium shall have ceased in the Chinese Empire, Ilis Majesty's Government will co-operate in any equitable measure for prohibiting the general importation of opium into China which the Chinese Government may then propose.

With reference to your telegram No. 95 of the 17th ultimo, I also transmit to you, for your guidance, copy of a further letter from the India Office, explaining how the second condition proposed by the Government of India for adoption by the Chinese Government should be interpreted.

in my

You may now approach the Chinese Government with the proposals set forth in the India Office letter of the 6th April, copy of which was sent you despatch No. 132 above referred to. I would at the same time remind you that although His Majesty's Government cannot abandon the principle of the additional article of the Chefoo Convention, they are yet prepared, if the Chinese Government reopen the question of increased taxation on foreign opium, to consider any proposal. you may see fit to make as to an increase in the present consolidated import duty.

I am, &c.

E. GREY.

* India Office, June 9, 1910.

[2793 r-1]

India Office, June 9, 1910.

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