CO129-396 - Public Offices - 1912 — Page 110

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The question being a complicated one, the directorate-general of the colonies desire to make a careful and prolonged study of the subject, so as to obtain a full knowledge of it. I

may, however, assure you that that department, as well as the Portuguese Government, are bent upon following the principle always shown of loyally co-operating in the suppression of the opium traffic, while protecting as far as possible the interests of the colony of Macao.

Whilst awaiting the particulars to enable me to give you a definite answer, avail, &c.

AUGUSTO DE VASCONCELLOS.

(Translation.)

Enclosure 2 in No. 1.

Private Note.

It

AT Macao from September 1903 to April 1909 the monthly average was 53 cases for local consumption and 153 for export, but after 1909, as the result of the restrictive measures adopted in compliance with the resolutions of the Shanghai Conference, the Thus the statement that for consumption dropped to 38 cases and the exports to 61. consumption and exportation from Macao 440 cases are sufficient is not correct. appears, therefore, that if the consumption and exportation of opium are to be limited at Macao, any limitation below 380 cases for local consumption and 460 for exportation would be injurious. The revenue of Macao, owing to the measures adopted by the resolutions of the Shanghai Conference, was reduced, as it was not possible to obtain from the farmer more than 148,750 patacas* (about 18,3871.), whilst Hong Kong clears by its exclusive right 1,200,000 patacas (about 108,0001), the quantity which the farmer may" deliver" for local consumption and export being only 900 cases. It is further notable that, contrary to what might be expected, according to information published in the "Economiste français" of the 27th July last, the exports from British India to China increased considerably between 1909 and 1911. Thus in 1908-9 the exports amounted to 6,233,000l.; in 1909-10 they dropped to 6,209,000l.; but in 1910-11 they rose to 8,509,000L All this suggests that the situation should be studied carefully and without haste. If we incautiously follow our inclinations without heeding our interests we shall sacrifice the revenue of Macao with no means of replacing it, but Hong Kong will maintain her revenue and continue to take the best advantage of the situation.

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

[September 10]'

SECTION 2.

OPIUM.

CONFIDENTIAL.

[38102]

I

>

Sir,

No. 1.

Colonial Office to Foreign Office.-(Received September 10.)

Downing Street, September 9, 1912.

I AM directed by the Secretary of State for the Colonies to transmit to you for the information of Secretary Sir Edward Grey, with reference to letter to the Colonial Office of the 26th August, copy of certain papers on the subject of the opium traffic with Macao.

(Telegraphic.)

Enclosure I in No. 1.

I am, &c.

JOHN ANDERSON.

Governor Sir F. May to Mr. Harcourt.

[Received Colonial Office, August 31, 1912.] SASSOONS report officially that more than 500 chests of opium uncertified have been shipped to Macão from India during the months July to August. Situation is becoming serious.

(Confidential.)

Enclosure 2 in No. 1.

Governor Sir F. May to Mr. Harcourt.

Sir,

Hong Kong, July 27, 1912. REFERRING to paragraph 6 of Mr. Claud Severn's Confidential despatch of the 12th June, 1912, I have the honour to transmit for your information copies of further correspondence.

I have, &c.

Enclosure 3 in No. 1.

F. H. MAY.

* One pataca equals 450 reis.

Acting Secretary-General, Macao, to Colonial Secretary, Hong Kong,

(Translation.)

Sir,

Macao, June 25, 1912. IN reference to your letter, his Excellency the governor directs me to reply as follows:--

1. The number of balls of raw opium, the boiling of which is allowed to the con- cessionnaire of opium in Macao is not extravagant.

The statistical means, which have led you to assume that the mean daily consump- tion in Macao corresponds to two-third chest, do not apply, for such refer to a perfectly abnormal period. At the beginning of 1909 the opium contract was rescinded through failure of payment of rent: since then till the middle of 1910, the boiling of opium was carried out under the administration of the Government, which for such an industry was unprepared. The natural result was that during this period un exporta- tion of prepared opium took place, but that, on the contrary, the contraband of opium coming from China and Hong Kong increased considerably, reducing to an insignificant quantity the sale of opium prepared under the administration of the Government. Such a state of things much prejudiced the actual concessionnaire, who in the first year of the existence of the contract had to make great efforts to secure export markets and to avoid the contraband of prepared opium coming from other places-contraband which had become a permanent practice.

For these reasons it will be conceived that calculations based upon statistics of importation for the years 1910 and 1911 would give false results.

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