[This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
CONFIDENTIAL.
[47329]
C.O.
39493
[November 7.]
RECR
REGE 13 DEC 12
SECTION 2.
No. 1.
Sir,
Messrs. E. D. and Messrs. D. Sassoon and Co., to Foreign Office.--(Received November 12.)
17, St. Helen's Place, London, November 6, 1912.
WE regret having to again trouble you on the subject of the opium question, but we learn from China that a presidential order has been issued forbidding further smoking, and ordering retail dealers to close their shops forthwith.
This at once entirely closes all outlets for the disposal of stocks in merchants' hands in Hong Kong and Shanghai, and the question therefore arises, What are merchants to do with their stocks ?
Drastic measures of this nature are in direct contravention of the spirit of the opinm treaties, and are opposed to the special instructions, explanatory of the agreement of May, 1911, issued to all the provinces. The instructions read :--
"If in any province cultivation has not entirely ceased, and there are still a large number of smokers, no forcible repressive measures must be taken in that province in respect of the trade in and movement of foreign or native opium."
Up to the present all the trouble has been due to the action of provincial authorities, which in itself made the position of the trade difficult enough; now, how- ever, the issue of a presidential order of the peremptory nature indicated above, deals a death-blow to the opium trade. This happens at a time when stocks of certificated opium in Hong Kong and Shanghai, plus the quantity still to go to China this year în accordance with the notification issued by the Indian Government, represent at the present rate of consumption over two years' supply, and a value of 13,000,000l. to 14,000,0007.
The Chinese Government, in returu for certain substantial concessions, undertook in the agreement of May, 1911, to withdraw all restrictions illegally placed upon the trade, and to impose no others, thus agreeing to let it gradually work itself out. As they are now doing all they can to harass the trade, and are determined to ignore the agreement, the only course left open is for the Chinese to take over merchants' stocks.
The Indian Government are making an already difficult position still more difficult, by continuing to sell uncertificated opium in quantities far in excess of legitimate market requirements, with the result that the bulk is smuggled into China. We now learn from Bombay, that the Government of India has notified the trade that next year the quantity of uncertificated opium to be sold will somewhat exceed the quantity sold this year, whereas it was hoped that it would have been materially reduced so as to keep it within the limits of legitimate market requirements.
We have, &c.
E. D. SASSOON AND Co. DAVID SASSOON AND CO. (Limited).
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