CO129-395 - Public Offices - 1912 — Page 410

Enclosure 2 in No. 1.

Consul-General Fraser to Sir J. Jordan.

(No. 47.)

Sir,

Shanghai, April 15, 1912. I HAVE the honour, in accordance with the instructions conveyed in despatch No. 14 of the 27th March, to report that-

your

1. The present stocks of Indian opium here are 10,827 chests of Bengal and 8,5044 chests of Malwa. They are abnormal, amounting at present rate of consumption. to three years' supply. For this the reasons given by a representative firm of importers are the lessened consumption during the revolutionary crisis, the closing of the Chekiang province for the past three months, and the harassing of the dealers by the new authorities; and, the sale in India of opium for other destinations than China being far in excess of their actual demand, smuggling of the cheaper article into China. 2. The stocks in Shanghai at the same period during the four previous yours

were

In 1908 2,916 chests of Bengal and 1,695) chests of Malwa.

In 1909 3,288

;}

12

In 1910 4,082

J

"

In 1911 10,395

>>

7,165 4,878 4,567

"1

**

>>

71

13

The large stock of Bengal drug last year was supposed to be due to expectation of drastic restriction in the import, which, it was apprehended, would be confined to certificated opium and to the customs letting duty-paid drug remain in the bonded warehouses.

Genuine decrease in consumption had set in before 1911 owing to Government efforts to suppress native opium growing, popular discredit of the smoking habit, and the higher retail cost in depreciated copper currency.

Although in the turmoil of the revolution growers of native drug have found opportunity to resort to what is the most profitable, if uncertain, crop, the new move- ment has been marked by increased ardour of denunciation against Indian opium as an alien method of bleeding China; and the present lack of central control encourages provincial governments to ignore treaty agreements as to the Indian opium trade, in the expectation that the noisy foreign opponents of all regard for the business represent a public opinion strong enough to keep them scatheless, whatever illegal measures they see fit to adopt. It is clear that the forcible closing of Chekiang, for instance, to regular importation and consumption supplies a speedy road to wealth to unscrupulous officers, whose connivance, however expensive, may facilitate smuggling and sly opinn deus.

I have, &c.

One of the reasons you have given for the falling off in consumption is the snuggling of uncertificated opium. This is a fact. The principal centre of smuggling is now Macao. The farmer there is allowed to import 125 chests per month when the consumption in Macao is only about one and a-half to two chests per day. You must have noticed some time ago that we wrote to India that the farmer had exhausted his supply. We now hear that he has made some new arrangement with the Portuguese Government, and has resumed boiling. When boiling was suspended in Macao deliveries here improved, but now they have fallen off again.

Another source of smuggling is Kwan Chao Wan. There appears to have been some hitch which closed that port as a source of supply, but from Calcutta letter we notice a shipment of fifty chests to Haiphong, which shows that smuggling will be resumed from that port.

We mention the above instances so that you may bring the matter to the notice of consul-general for transmission to the Minister.

Here we have repeatedly seen the commissioner of customs with regard to smuggling from Macao, and as a result the customs officials have been exercising greater vigilance, but as long as Portugal and France are willing to close their eyes to the illicit traffic that is being carried on from their territories, so long snuggling will continue. The only effective means is to reduce the quantity at Calcutta to the bond fide requirements of the countries outside China.

Yours faithfully,

E. D. SASSOON AND Co.

Enclosure 3 in No. 1.

E. H. FRASER.

(No. 57.) Sir,

Consul-General Fraser to Sir J. Jordan.

Shanghai, April 24, 1912,

I HAVE the honour to forward herewith copy of a letter received by Messrs. E. D. Sassoon and Co., Shanghai, from their Hong Kong firm, confirming the statement previously made that uncertificated opium is being smuggled into China.

I have, &c.

E. H. FRASER.

Enclosure 4 in No. 1.

Messrs. E. D. Sassoon and Co. (Hong Kong) to Messrs. E. D. Sassoon and Co.

Dear Sirs,

THE opium question.

(Shanghai).

Hong Kong, April 17, 1912.

We have read with interest your letter to His Britannic Majesty's consul-general at your place, giving him the particulars the Minister asked for in regard to stocks in Shanghai and re the consumption.

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