CO129-383 - Public Offices - 1911 — Page 207

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There are no advices to hand with regard to the price at which the Government purposes to sell these 16,000 chests, but it is presumed that they will be auctioned in the ordinary way, and very probably will fetch considerably less than the chests sold with China export licences. The surplus stock must be disposed of, and will probably be smuggled; in any case it will be a danger to the trade. Further, it is not clear whether Hong Kong is considered by the Indian Government a port of China or a non- Chinese port.

The British merchants here interested in the trade (the amount

身 represented by the stocks on hand alone will be seen by reference to previous letters) feel that the Indian Government should take immediate steps to adequately protect the merchants' interests in view of the fact that the Government makes enormous profits out of the trade compared with those the merchants carn, and consider that the existing condition of affairs constitutes a distinct injustice to them and the trade.

We may mention that a telegram was recently sent by the Governor of Hong Kong, at the request of the opium merchants at Hong Kong, to the Viceroy of India on the subject of excessive sales, and our clients are anxious that the Government of India should know at the earliest possible moment that the merchants here support the objection to sales for non-Chinese ports being in excess of legitimate requirements. We should be indebted to you if you would supply us with a copy of the telegram dispatched by you or by His Majesty's Minister as the case may be.

We have, &c.

HANSON MCNEILL AND JONES,

Enclosure 3 in No. 1.

Messrs. Hanson McNeill and Jones to Consul-General Fraser.

Dear Mr. Fraser,

Shanghai, February 8, 1911. MY clients, the opium merchants, are anxious to know whether (1) any reply has been received from the Minister, and whether any telegram has been sent to the Viceroy of India, (2) whether you have yet communicated with the Taotai on the subject of regulations.

I should have come to see you to-day on the matter had I not been very busy preparing for the hearing of an action to-morrow.

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Enclosure 5 in No. 1.

Messrs. Hanson McNeill and Jones to Consul-General Fraser.

Sir,

Shanghai, February 22, 1911. REFERRING to previous correspondence herein on the subject of the opium trade, we beg to inform you that we are advised that during last year 16,222 chests of Patua opium and 6,470 chests of Benares opium, making a total of 22,692 chests, were imported into Hong Kong. Of these it is estimated that 900 chests were consumed in Hong Kong, and that 21,792 were exported from that place. We are further informed that the Government of India has issued a notification that it will reduce the number of chests of Benares opium, which it will sell per month from July to December of this year. This of course is in our client's view a ridiculously small reduction, though the fact that a reduction has been notified indicates that the Government is prepared to consider the grievances of the merchants. Even this small reduction of fifty chests per mensem is, however, not in reality a reduction of more than twenty, as thirty of the chests are to go direct to Formoso, which country has up to the present been supplied by the merchants and not direct by the Indian Government. The number of chests of Benares opium auctioned each month by the Government is 1,360. You will observe that it is a matter of considerable importance to know whether Hong Kong is considered by the Government of India as a China port. We think that we have made it clear in our letter of the 25th January that it is an injustice to British importers here that a larger quantity of opium should be sold monthly by the Indian Government than according to the regulations made there can possibly be legitimate outlet for, and while the reduction which has now been notified recognises in principal the justice of the merchants' complaints, it is a very inadequate provision against the great amount of smuggling that will probably take place under the new regulations. We are informed that the merchants in Calcutta have protested against the arrangements indicated by the notification referred to above, and our clients are desirous of having their protests also recorded, and we are asked to request that you will convey to the Government of India through the proper channel an expression of the merchants' dissatisfaction at the smallness of the reduction.

We have, &c.

HANSON NCNEILL AND JONES.

GOT

Enclosure 4 in No. 1.

Yours, &c.

LOFTUS JONES.

Dear Mr. Jones,

Consul-General Fraser to Mr. Jones.

Shanghai, February 9, 1911. IN reply to your letter of yesterday, I have to state that His Majesty's Minister has not informed me what communication, if any, he made to the Government of India on receipt of my telegram of the 26th ultimo, sent at the request of your clients.

For my own information I should feel obliged if you would tell me whether the earmarking of a certain number of chests as destined for China is a new departure, and whether your clients have precise information in regard to the issue of certificates for certain chests, that only such chests will be allowed to be openly brought into China, and that such chests may not be taken to other consuming areas,

It would also be a convenience if your clients could inform me of the average number of chests used at destinations other than China proper, ie, including Hong Kong as another destination during the last five years.

The reply to your earlier letter as to opium regulations in Kiangsu is being copied.

I have, &c.

E. D. H. FRASER.

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