CO129-384 - Public Offices - 1911 — Page 342

339

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

0

OPIUM.

CONFIDENTIAL.

[29422]

No. 1.

27520

Rice Reat 22 AUG [July 20

SECTION 2,

Sir,

Foreign Office to India Office.

Foreign Office, July 29, 1911. I AM directed by Secretary Sir E. Grey to transmit to you, to be laid before the Marquess of Crewe, the accompanying copy of a letter from Messrs. Sassoon, complaining of the levy by the Chinese authorities of the new duty of 350 taels on opium which was in transit between Hong Kong and Shanghai on the date of the opium agreement of the 8th May last.* Lord Crewe will remember that this was one of the subjects dealt with in the despatch No. 231 of the 31st May last from His Majesty's Minister at Peking, copy of which was sent to your department on the 24th ultimo.

Sir E. Grey proposes to inform Messrs. Sassoon that His Majesty's Minister reported at the time on the action complained of, which had been brought to his notice by the opium merchants at Shanghai and Hong Kong through the medium of the Hong Kong and Shanghai Banking Corporation.

It was, Sir J. Jordan stated, held by the Chinese Government that the proper construction of the agreement was that opium in transit on the 8th May between the treaty ports was liable to the old duty of 110 taels, but that exemption from the new duty could not be claimed for uncertificated opium which was passing between Hong Kong and a treaty port on that day. The Chinese Government had been extremely reluctant to give opium stored in Hong Kong the benefits of the new arrangement, and in construing the agreement they refused to consider Hong Kong as on the same level as the treaty ports. They pointed out that over 4,600 chests of certified opium had been cleared at Shanghai at the old rate of duty just before the 8th May, involving a loss of revenue of considerably over 1,000,000 taels, and they absolutely declined to make any further pecuniary sacrifice.

This information was communicated at the time to the opium merchants concerned, amongst whom were Messrs. Sassoon's own agents.

Sir E. Grey further proposes to transmit a copy of Messrs. Sassoon's letter to Sir J. Jordan for his observations, and to inform them that he has done so.

I am to enquire whether Lord Crewe concurs in the action above suggested.

I am, &c.

F. A. CAMPBELL.

* Messrs. Sassoon, July 25, 1911.

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