CO129-383 - Public Offices - 1911 — Page 71

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This Tupament is the Proporty of His Britannic Majesty's Government

OPIUM.

C O

3345

Acce 22523 II [March 28.1

70

L CONFIDENTIAL.

[11347]

No. 1.

SECTION 2.

India Office to Foreign Office.-(Received March 28,)

India Office, March 27, 1911.

Sir,

IN continuation of this Office's letter dated the 25th March, 1911, I am directed by the Secretary of State for India in Council to enclose a copy of a telegram from the Government of India on the subject of the opium negotiations with China, aud to suggest that Sir John Jordan should be asked for observations and suggestions ou the question raised by the Government of India as to how it is proposed to discriminate between the 18,000 chests already in treaty ports and uncertificated opium which may arrive there before the expiry of the proposed term of grace.

I am, &c.

R. RITCHIE,

Enclosure in No. 1.

Government of India to Viscount Morley.

(Telegraphic.) P.

March 25, 1911. WITH reference to your telegram of the 24th March, and telegram of the 22nd March from Jordan, we are willing to accept proposals regarding increase in import duty in consideration of non-restriction of wholesale trade. We view with much misgiving any arrangements for excluding Indian opium according to provinces, as they will tend to unsettle trade and to occasion continual dispute and trouble. If, however, the principle must be accepted, we shall not raise objections to details proposed. To reduce by 13,000 chests certified exports is a most serious infringement of the spirit of the agreement at present in force and of our rights. But we are ready to accept it should a settlement be impossible otherwise. Does it, however, imply that during the three next years our sales of certified opium must be reduced by the quantity of uncertified opium remaining in treaty ports on the date when, with the Powers' consent, they are closed finally? If that be so, a period of grace of six months may be more harmful than beneficial, for the uncertified opium which we are to sell beginning from April will be entering the ports, and there is no certain method of distinguishing it from the opium which was sold before 1911 with complete market rights. If we accept principle of taking the uncertified opium in reduction of certified opium, it is absolutely necessary to withdraw our suggestion for an agreement for five years in substitution for the full seven years' period.

(Repeated to Peking.)

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