CO129-383 - Public Offices - 1911 — Page 568

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

5.0.

10008

OPIUM,

28 16 JUN 11

CONFIDENTIAL.

[May 12.]

SECTION 4.

[18032]

(No. 174.) Sir,

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received May 12.)

IN continuation of my telegram No. 88 of the 30th ultimo, I have the honour to

Peking, April 24, 1911. enclose copy of a despatch from His Majesty's consul-general at Shanghai, in which further expression is given to the views of the opium merchants as to the situation in which they will be placed unless the introduction of uncertificated Indian opium is prohibited.

I have, &c.

J. N. JORDAN,

Enclosure in No. 1.

(No. 42.) Sir,

Consul-General Fraser to Sir J. Jordan.

Shanghai, April 12, 1911. BEGGING reference to my telegram No. 20 of the 31st March, I have the honour to report that the local representatives of Messrs. David Sassoon and Co. (Limited) and of Messrs. E D. Sassoon and Co. called on me this forenoon and represented that the Indian opinn market here was disorganised, and the Chinese dealers were refusing to take up contracts, owing to the action of the Indian Government in offering to give certificates of its being destined for China for opium bought at the mouthly auctions up to a total for the year of 15,440 chests, without first arranging for China to take steps to prevent opium not under such certificates being equally free to enter the China market.

The opium in stock here was put by my visitors at 15,000 chests, all paid for to the Indian Government, which, by refusing to curtail the supply, drove the holders to go on bidding at the auctions in order to prevent competitors obtaining the drug at cheap rates and flooding this market.

The complainants, who held that the Indian Government was morally bound to support their customers in putting the certificated drug into consumption, went so far as to confess that they would not object if further supplies were stopped altogether until the stock, inflated by the high prices last year having attracted opium from Singapore and elsewhere, was worked off or greatly reduced.

They dilated on their losses already incurred and the ruin that impended over the trade unless the introduction of uncertificated Indian opium was promptly prevented.

I told them that as my telegraphic statement had elicited no reply, I doubted whether further representations would be of service; but, as they renewed their request that I should again address you, I consented to lay their protest before yon,

When they went on to complain of the harassing measures of the Chinese authorities I opined that we had no treaty rights to intervene, even should the use of opium be made a capital offence by the Chinese Government.

To this they retorted that the Indian Government, which forced them to buy at high rates, should be responsible for losses caused by any such drastic interference with the course of a long-established trade.

[2011 m-4

I have, &c.

E. H. FRASER.