CO129-382 - Public Offices - 1911 — Page 466

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

OPIUM.

CONFIDENTIAL.

[6581]

No. 1.

C O

6653

[February 22.]

SECTION 2.

Sir J. Jordan to Sir Edward Grey.--(Received February 22.)

(No. 58.) (Telegraphic.) R.

Peking, February 22, 1911. MY telegrams Nos. 41 and 51 of 15th and 17th February: Opium. Opium negotiations are making little or no progress. Chinese delegate to-day submitted proposals 1 and 2, referred to in my telegram No. 41, in amended form, as follows:--

1. Laws and regulations promulgated by Chinese Government, or its executive officers, for suppression of opium enforced on native opium shall, after negotiations, and with consent of British Government, be applied to Indian opium.

2. If, in suppression of opium, circumstances should change, or superior arrange- ments be discovered, amendments to present agreement may be proposed and considered.

I objected to 1st as unnecessary, and calculated to give encouragement to continuance of official obstruction and popular agitation.

The 2ud seemed to be equally inadmissible.

In substitution of both proposals, I offered, as last resort, to recommend to you addition of an article providing, in usual form, for revision of agreement, if necessary, during period of seven years.

Chinese delegate definitely rejected our proposal regarding treatment of opium exported before 1911, and firmly adhered to principle of time limit.

As regards increase of consolidated duty, he submitted a memorandum reviewing taxation of opium relatively to market price since conclusion of additional article in 1885. This endeavours to show that consolidated duty from being 30 per cent. ad valorem in 1885 has gradually fallen until it is now barely 5 per cent. ad valorem. China, it is contended, has lost a large revenue during last twenty-five years.

The request now made is that consolidated duty should be fixed at 30 per cent. of the price at which opium is sold in India, plus cost of freight and insurance, taxation of native opium to be correspondingly increased.

I should be grateful for early instructions as to amount of increase which His Majesty's Government are prepared to sanction.

(Sent to India.)

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