CO129-373 - Public Offices - 1910 — Page 210

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

OPIUM.

CONFIDENTIAL.

[35315]

209

3.0.

131429 FREE

[September 20.]

SECTION 1.

Road 10

No. 1.

(No. 161)

Mr. Max Müller to Sir Edward Grey.—(Received September 29.)

(Telegraphic.) R.

Peking, September 29, 1910.

MY telegram No. 159 of 28th September: Opium. Mr. Liu has handed me in writing following proposals :-

1. The new arrangement for the progressive reduction of the export of opium from India to China shall be concluded not for three years but for seven; if China at any time fails to carry out her share of the arrangement in regard to the prohibition of opium, His Majesty's Government shall have the right to protest.

2. Chinese Government will take advantage of the permission granted in 1907 to station officer in Calcutta to watch opium auction and the packing of drug. They suggest that officer should be authorised to issue conveyance certificates for all opium exported to China, and seal the chests up to the number allowed to be exported to China each year. The Maritime Customs would only permit the entry into China of opium provided with certificate and seal. In the event of His Majesty's Government consenting to this arrangement, China will invite other Powers to adhere so as to make it binding on their respective nationals. This would remove all cause of complaint in regard to the 16,000 cases not affected by the reduction.

[35316]

No. 2.

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(No. 162.)

Mr. Max Müller to Sir Edward Grey.--(Received September 29.)

(Telegraphic.) R.

MY telegram No. 161 of 29th September: Opium.

Peking, September 29, 1910.

I would suggest replying to Chinese proposals officially [on] following basis :-

1. His Majesty's Government are prepared to continue the arrangement of 1907

for full balance of ten years on following conditions:--

(a.) China shall make corresponding annual reduction in production.

(b.) On confirmation of present arrangement China shall at once withdraw all regulations in restraint of wholesale trade in Indian opium that have been put in force in any treaty port by provincial authorities, and undertake that until the end of 1917 no regulations in restraint of wholesale trade in Indian opium at treaty ports shall be imposed, and that there shall be no arbitrary reduction in number of dealers in Indian opium at those ports.

(e.) The consolidated duty and li-kin shall not be increased until there has been corresponding and effective increase in taxation on native opium. His Majesty's Government are, however, prepared to consent to an increase on production of proof of corresponding increase on Chinese drug.

Any failure on the part of China to fulfil condition (a), or any infringement of conditions (b) and (c), shall entitle His Majesty's Government to terminate arrangement. 2. His Majesty's Government consent to dispatch by China of an officer to India to watch sales and packing, on condition that he has no power to interfere:-

(a.) With a view to assisting China, His Majesty's Government undertake that from year 1911 the Government of India will issue an export permit for each chest declared for China or for consumption in China.

(b.) During 1911 number of permits issued will be limited to 30,600, and shall be annually reduced by 5,100.

(c.) Each permit, before shipment of the opium, shall be presented to the Chinese officer, who shall endorse and seal it.

(d) Each chest for which permit has been granted shall be sealed by an Indian Government officer in the presence of the Chinese officer.

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