CO129-396 - Public Offices - 1912 — Page 11

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As long as the Indian Government continues to sell more uncertificated opium than the markets (other than the China market) can absorb, so long will smuggling into China go on.

We have on previous occasions expressed the opinion that the only real remedy for preventing smuggling is to reduce the quantity of uncertificated opium to the legitimate requirements of the outside markets, and we trust that His Majesty's Government will now see the matter in this light,

We have, &c.

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

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

OPIUM.

CONFIDENTIAL.

0.0.

PODE 10 ANC 10 [July 22.]

SECTION 2.

[31035]

No. 1.

Consul Carlisle to Sir Edward Grey.-(Received July 22.)

(No. 1. Confidential.) Sir,

Saigon, June 18, 1912. I HAVE the honour to inform you that I learn from a private, but well-informed, source that M. Malan, the late Secretary-General of French Indo-China (who has, unfortunately, just died here), when on the visit which he paid to Yunnan last April, entered into negotiations with the Government of that province with a view to arranging for the supply of Yunnan-grown opium to the French protectorates of Tonquin and Annam. As you are doubtless aware, the cultivation of the opium poppy, which had been almost entirely suppressed over a large portion of Yunnan, if not throughout the entire province, has recommenced on a very considerable scale since the late revolution. Before that event the amount of Yunnan opium imported into French Indo-China, which some years ago was by far the greater portion of the total opium import, had been gradually falling off as the suppression of the cultivation became effective and had been replaced by Indian opium. My information is that the Government of Yunnan is now willing to encourage the cultivation and export for revenue purposes, as it badly needs funds, and that the Indo-China Government is inclined to help. The latter has already purchased a quantity of Yunnan opium during the last six months, and for that reason ouly about 1,000 chests of Indian opium are required for the year. The Indian opium is for Cochin-China; the Yünuanese, as I have said, for Tonquin and Annam. During M. Malan's visit an attempt was apparently made to enter into a contract for a regular supply; I am informed that this has not yet been arranged, but that it is hoped that

may be. "with the good-will of the British Government" it

In view of the agreements between the British and Chinese Governments with regard to opium, I have considered it my duty to report what I have heard of this proposed arrangement, although it has probably been already brought to the notice of His Majesty's Government.

I have, &c.

T. Fr. CARLISLE,

[2549 y-2]

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