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modify those provisions, they must proceed in the usual way by negotiation with the treaty Powers.
As the Wai-wu Pu state that they have not actually rejected the memorandum, His Majesty's Government earnestly hope that, on further examination of its contents and of the position which will arise if it is set aside, the Chinese Government will come to the conclusion that it offers a very liberal and reasonable solution of the opium
The Chinese KTA question, and that its acceptance will be in the interests of China. Government have from the first admitted that a direct arrangement of an informal kind for limiting the export from India is preferable to the alternative method of But any arrangement to be negotiating with the Powers a revision of the treaties. satisfactory to the interests of India must have regard to the fact that the two Governments originally agreed upon a period of ten years, as not more than sufficient for the effectual accomplishment in China and in India of so great a scheme of reform. Such evidence as exists points to the fact that opin is still extensively cultivated in China, and that the Indian import is still relatively small. The Chinese Government must have been of this opinioù in September last, when, in reply to the offer made by His Majesty's Government to continue the existing arrangement for a second term of three years, they made a point of extending it for the full remaining period of seven years.
His Majesty's Minister at Peking has been instructed by telegraph to inform the Chinese Government of the objections entertained by His Majesty's Government to their recent action, and to make it clear that, pending the resumption of n gotiations on the basis of Mr. Max Müller's memorandum, they will insist on the strict observance of their treaty rights.
Foreign Office, December 22, 1910.
[This Document is the Property of His Britannic Majesty's Government.]
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OPIUM.
Best 7 JAN ||
[December 22.]
CONFIDENTIAL.
SECTION 2.
[46282]
No. 1.
Sir J. Jordan to Sir Edward Grey.--(Received December 22.) (No. 205.) (Telegraphic.) R.
Peking, December 22, 1910. YOUR telegram No. 161 of the 20th December: Opium arrangement. My views are:-
1. Government of India should, I think, continue reduction of export of opium after 31st December.
Although Chinese Government have not produced statistical proof that they have carried out their share of agreement of 1907, the reports of British consular officers show in my opinion that China has done sufficient in the way of reducing cultivation to justify such a demand, and we have already waived production of proof. For evidence of reduced cultivation, please see my telegram No. 173, Tengyueh Trade Report for 1909, p. 5, and Chungking Trade Report for 1909, p. 8.
2. We appear to me to be under no obligation to commence earmarking from 1st January. We have done all we can to meet requirements of Chinese Government on this point, and they have rejected our reasonable offers with full knowledge of the consequences. To prevent any misapprehension I propose to communicate substance of Viceroy's telegram to Wai-wu Pu as you suggest, and to let them know clearly that unless fresh agreement is concluded and earmarking begins on 1st January it will have to be postponed for another year.
(Repeated to India.)
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