CO129-395 - Public Offices - 1912 — Page 375

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

C. 0.

19041 0371

OPIUM.

CONFIDENTIAL

[22189]

No. 1.

May 24.j.

SECTION 1.

Messrs. E. D. and Messrs. D. Sassoon and Co. to Foreign Office.-(Received May 24.).

17, St. Helen's Place, May 23, 1912. Sir,

WE had the honour on the 21st instant to pass on to you copies of telegrams received from our Indian and China houses, showing the hostile attitude of the Chinese provincial authorities towards the legitimate opiuin trade and their inaction with regard to illegitimate importation and increased native cultivation.

We have received further urgent telegrams to-day from the east on the same subject to which we would ask your careful attention, viz.:-~-~~

1. Telegram from Hong Kong:

"Shipments of uncertificated opium from Calcutta direct to Macao within six weeks have amounted to 400 chests, besides the large shipments previously made in the same proportion. The legitimate requirements are at most 200 chests yearly,”

2. Telegram from Bombay:

Market demoralised in Shanghai wires: Chekiang prohibition still in force. consequence. Indian Government must enforce treaty. If prohibition continues a Can do nothing more panic is feared which will result in enormous financial losses. on this side.'

This is an exceedingly grave state of affairs, threatening not only British merchants interested in the trade, but the banks, and the whole Hong Kong and Shanghai trade as well, and calls for immediate and strong action if a financial crisis is to be averted.

We beg leave to suggest that now, at a time when His Majesty's Government is countenancing and supporting the arrangement of large loans to China, pressure may be brought to bear on the Chinese authorities to ensure their strict observance of the recent opium agreement. May we urge that this opportunity may not be lost, and that measures will be at once taken to have the restrictions placed upon the legitimate trade withdrawn and the smuggling suppressed.

Portugal, having adopted the Chefoo Convention, undertakes to prevent smuggling from Macao. The total annual requirements of that colony being only 200 chests, we beg leave to suggest that the Portuguese Government be asked to restrict the importations to the requirements of Macao, in the same way that the Hong Kong farmers' importations are restricted to the requirements of Hong Kong.

We have, &c.

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

[2502 na-]

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