CO129-394 - Governor Sir May & Public Offices - 1912 [12] — Page 75

COPY.

.nixeq

Enclosure

633

73

*Ove stafi *?

xd .00 3 moongat hi. XI

‚ugosol .2 .E (.00)

.où roosted (.8 (.3)

.00 2 btv.d

.00

8 or tel

Ival hi sinora (.22)

(8)

.Ara.ol ... *** (.52)

.IOLAT A. (8)

+

.nord desno), (.na)

.Iox oil .⠀ .L (DE)

.ou a Ioobda .!! (.-3)

.enti a H (.08)

✦.....

ilomeer Div :0 (.02)

Your Excellency,

Hongkong, 12th December, 1912.

REGE 6 JAN 13

We have the honour to approach Your Excellency

on the subject of the Foreign opium trade with China, the present

position of which is such as to give cause for extreme anxiety to

all concerned, owing to the enormous financial interests involved.

.

It seems to us of the utmost importance that

some action should be taken to prevent the present stocks of opium

in China being augmented by further shipments from India until

some settlement of the breach of the Indian Government's Agreement with China has been arrived at. Under that Agreement a specified

amount of opium, specially earmarked, was to be sold by the Indian Government annually for shipment to China, and it was stipulated

that beyond an import duty of a certain amount per chest, no

restrictions would be placed on the trade by the Chinese Govern-

- ment, pending a total cessation of that trade in a certain num-

-ber of years. The Merchants naturally considered the terms of this Agreement would be adhered to and consequently bought from the Indian Government the certificated opium sold at auction for

the China market. For some months past various restrictions, contra

-ry to Treaty, have been imposed by the Chinese against Indian

Opium, resulting in an accumulation of stocks, and we understand

that it is now the intention of the Chinese Government to en-

-deavour to put a stop to opium smoking at the end of the current month. This in itself is a very serious matter to the Merchants who bought opium in good faith that the agreement to gradually curtail the trade would be adhered to. At the present moment the stock of opium in the hands of Merchants is estimated at a value of

£12,000,000, including over £1,000,000 in this Colony.

Banke in both India and Chins felt justified in financing the Lerchants as they considered the business was

protected by Treaty.

The present situation is very serious and will

be considerably enhanced if, so long as the Chinese Government