CO129-384 - Public Offices - 1911 — Page 281

This Document as the Property of His Both a

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OPIUM.

CONFIDENTIAL.

[28590]

No. 1.

[July 21.]

SECTION 3.

India Office to Foreign Office.-(Received July 21.)

India Office, July 20, 1911. Sir,

WITH reference to the correspondence ending with Mr. Montagu's letter of the 12th July, I am directed by the Secretary of State for India in Council to forward, for Sir Edward Grey's information, copy of two telegrams, in which sanction has been given to the reduction in the amount of uncertificated opium for sale in 1911 and other calendar years from 16,000 chests to 14,000 chests, subject to reconsideration in respect of 1912 and following years, in the light of the result of the enquiries now being prosecuted in connection with Mr. Montagu's letter above quoted.

Enclosure 1 in No. 1.

I am, &c.

R. RITCHIE.

Government of India to the Marquess of Crewe.

July 12, 1911.

(Telegraphic.) P.

ÕPIUM sale. Our telegram of 21st June and yours of 28th June. After carefully considering question of reduction of rates of opium for markets other than China, we find great difficulty in making distinction between (1) genuine fall in consumption in these markets, and (2) extent to which opium has been diverted from them to China under stimulus of high prices ruling there. Presumably latter cause only operated from end of 1909, when our Calcutta prices rose suddenly. For the five years 1905-09, according to best available statistics, the average consumption of non-Chinese markets just exceeded 14,000 chests. We are prepared for the present, and pending receipt of exact information as to local requirements which you have promised to obtain, to take that figure as normal demand, and to reduce to 14,000 chests our rates for the current calendar year. Accordingly, we propose to announce at once that reductions of 1,000 chests in each month will be made in the amounts notified for sale in November and December. We shall observe how prices move, and to what destination the uncertificated opium is shipped, and shall review the whole position for 1912 when we have received your figures.

Enclosure 2 in No. 1.

The Marquess of Crewe to Government of India,

(Telegraphic.) P.

YOUR telegram of the 12th July: Opium sales.

India Office, Judy 17, 1911.

I am inclined to think that a still larger reduction would be justified in existing circumstances, but I accept your proposal, viz., to reduce by 1,000 chests a-month notified sales for November and December next. According to a report by Reuter, Hong Kong traders consider amount sold this mouth far in excess of visible demand. Foreign and Colonial Offices have been asked to get information as to opium requirements of countries other than China.

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