CO129-394 - Governor Sir May & Public Offices - 1912 [12] — Page 71

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His Excellency Sir Henry May, K.C.M.G.

Your Excellency,

Hongkong, 11th December, 1912.

633

RECE

REGE 6 JAN 13,

We, the undersigned, merchants interested in the opium trade beg to draw your attention to the very grave situation obtaining today.

We would respectfully remind Your Excellency of the Now Opium Agreement of May, 1911, whereby, in consideration of the re- -moval of all harassing measures (i.e. illegal taxation etc., etc.) the British Government agreed to the Chinese Government raising the duty and likin from Tle. 110 to Tls. 350 and, further, the British Govern- -ment agreed to diminish the output from India.

Very soon after the publication of this agreement the obstructive methods referred to above were resumed, culminating with the entire closure of the Province of Chekiang to the importation of Indian Opium from the early part of 1912 and since then, sometime in August last a proclamation was issued by the Commissioner of Police in Canton to the effect that after the 31st. December, 1912, no more

smokers licences will be issued and that the trade must cease on that

date.

Since the issue of this proclamation practically

every province in China, acting under instructions from the Central Government has issued proclamation to the same effect, thus bringing about the present very critical situation. The latest telegrams from

our Shanghai Branches of yesterday's date inform us that the Chinese

Authorities in Hankow have notified the dealers to re-ship the Indian Opium, stored with the Hankow Customs, back to Shanghai.

The threat to end the trade at the conclusion of the

current year, if carried out, would bring about a very rave financial

crisis.

We would invite Your Excellency's attention to the

following figures which show the stocks at stake.

Hongkong,