CO129-375 - Governor Sir Lugard - 1911 [1-2] — Page 102

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check smuggling the Indian Government made a counter pro-

-Posal, very much more favourable to China, viz.:- that the

actual sources of supply should be annually reduced, at a

great loss to Indian Revenue. In doing so the Indian

Government estimated the amount taken by China to be 51,000

chests, and the consumption of other countries to he 16,000.

The latter quantity she did not propose to reduce. Actual

figures of the first year 1908, showed that China only

imported 47,141 leaving 19,859 as the consumption of other

countries. Thus the consumption of China had been over-

estimated and that of other countries under-estimated. But

eb.

it is an undoubted fact that the steps taken by other

countries (simultaneously with China) to check Opium

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smoking had led to a very great decrease in the demand for

Opium, and since the 16,000 chests are not reduced annually

it is probable that they are largely in excess of the

quantity actually in demand by these "other countries?

Thus the intention of the Indian Government to export only

such an amount as would allow of an annual decrease by one-

-tenth of the Chinese imports is in point of fact to some

extent nullified. The Chinese suggested the marking of the

chests destined for China, and the Indian Government

agreed. This effectually limits the amount which may be