CO129-396 - Public Offices - 1912 — Page 526

8.0.

26740/12

4. Kong

Straits

521

#

2

respectively, the 10th November, 22nd November, 24th November, and the rst December 1911, have not only confirmed us in the view that our estimate was very moderate, but have convinced us that the amount exported in 1910, vis, 16,000 chests, was in no way excessive. The reduced figure of 13,200 chests fixed for this year, so far from being in excess of genuine requirements, is clearly insufficient to meet them, and we respectfully suggest that any statement to the contrary must be based on information proceeding from interested sources. It has been our own experience, and we have no doubt that the same condition holds in the case of traders in China, that merchants who have accumulated large stocks of opium for consumption in China, in the hope of making enormous pro- fits over their transactions, invariably represent whatever amount we may fix for export to non-China markets as being in excess of actual requirements, and urge the possibility of its being smuggled to China.

5. This latter consideration brings us to our further contention, which we have on more than one occasion pressed upon your Lordship, that no reduction of non-China exports, short of absolute stoppage, will prevent such smuggling. As long as prices in China are decidedly higher than the non-China consumers are willing to pay, so long must smuggling be profitable. If China insistently demands more opium than, under treaty obligations, we are allowed to certify, and is willing to pay abnormal prices for it, we inay reduce our export of uncer- tified opium to vanishing point without effecting the purpose at which we are aiming. The more those exports are reduced the more will the non-China markets be starved, unless they are prepared either to outbid the China smug- gler, or to substitute Persian and Turkish for Indian opium. A tendency in the latter direction is, indeed, already noticeable, as shown by the quantity of Persian While and Turkish opium transhipped at Bombay for Singapore during 1911. only 64 chests of Persian and none of Turkish opium were consigned from Bombay to Singapore in 1909, 581 chests of Persian and 78 of Turkish opium were so consigned in 1910, and 1,127 and 363 chests, respectively, in 1911. is possible, in view of these figures, that the only result of a further restriction of our exports would be to benefit the Persian and Turkish opium interests. In any case we consider that any such restriction regarded as a method of discourag ing smuggling would be not only extremely expensive but ineffective, and we confidently assert that our action in the matter has not failed to be consistent with the general policy which has been accepted by His Majesty's Government in opium matters.

We have the honour to be,

MY LORD MARQUIS,

It

Your Lordship's most obedient, humble Servants,

(Signed) HARDINGE OF PENSHURST,

O'M. CREAGH.

R. W CARLYLE.

HARCOURT BUTLER.

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S. A. IMAM.

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