CO129-384 - Public Offices - 1911 — Page 248

This Document is the Property of His Pritannic Majesty's Government

со

OPIUM.

CONFIDENTIAL.

[27190]

24845

REP Rest 29 11

[July 11.]

SECTION 1.

No. 1.

245

Messrs, E. D. and Messrs. David Sassoon and Co. to Foreign Office.- (Received July 11,) Sir,

WE beg to thank you for your letter of the 4th instant, and to inform you that at

9, Fenchurch Avenue, E.C., July 10, 1911. the Government auctions held in Calcutta on that day certificated ophim sold at 3,400 rupees for Patna and 3,300 rupees for Benares, while uncertificated sold at 1,605 rupees, or less than half the price realised by certificated,

We learn by wire from India that a large quantity of uncertificated opium has been shipped to Hong Kong. As you are aware, only certificated opium may from the Sth instant be imported into China, so it is fair to assume that the uncertificated now shipped to Hong Kong will find its way into China either with or without the connivance of the Chinese authorities, to the serious detriment of the legitimate trade. The enormous difference in the purchase price will undoubtedly act as an incentive to smuggling, and if the heavy import duty can also be evaded the inducement will be still greater. There is only one outlet for opium in quantity, and that is China, and the bulk of the uncertificated opium will eventually find its way into that country somehow.

We cannot help expressing regret that the Indian Government could not see its way to act upon our suggestion to postpone the auctions, as had it done so the Indian revenue would not have suffered to the extent shown above, and the stocks in China would have been reduced in the normal way, without having this low-priced uncertificated opium to hamper the trade.

May we express a hope that His Majesty's Minister at Peking may be instructed to warn the Chinese Government with regard to the uncertificated opium shipped to Hong Kong, so that steps may be taken to prevent its interference with the disposal of legitimate stocks.

We have, &c.

E. D. SASSOON AND CO. DAVID SASSOON AND Co. (Limited).

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