CO129-405 - Public Offices - 1913 — Page 248

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disposed of under official supervision; the opium to be paid for by short-dated bonds bearing interest which would be redeemed from time to time as the opium was disposed of In this way there would be no loss either to the merchants or to the Chinese Government. China would be gratified and would "save face" by getting rid of the Indian import, and it would be completely within her power to finally extinguish opium smoking in a few years' tine. And lastly, we should be quit once and for all of this long-standing vexed question. From the Indian Government's point of view, it is no doubt asking something of a sacrifice, but by common consent the China opium trade is doomed to extinction in a few years' time in any case, and in the circumstances which have arisen it is doubtful whether any more sales can be made to China whatever happens.

If, however, it is found impossible to put pressure on the Chinese Government to adopt one or other of these alternatives, viz,, either to allow the 1911 agreement to run its course or to take over the stocks, then it would seem only a measure of justice that the British and Indian Governments should come to the assistance of the merchants by relieving them of the actual loss, whatever that may turn out to be, reserving, if thought fit, the right to claim indemnity from China later on. The Indian Government has received large sums for certificated opium over and above the normal auction price. These certificates were taken to guarantee, on the strength of the 1911 agreement, that the opium covered should be admitted to a free market in China. That guarantee has turned out to be valueless and, to that extent, India might fairly be asked to contribute to the loss in respect to each chest unsold.

It may also be pointed out that, apart from the treaty obligation, China has put herself hopelessly in the wrong by accepting duty on some 4,500 chests which she now refuses to admit to her markets. If she cannot be required to take over the whole stocks, at least she ought to contribute to the loss by taking

over this

I have, &c.

G. JAMIESON, Chairman.

amount.

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

OPIUM.

CONFIDENTIAL.

[5519]

No. 1.

247

[February 5.]

SECTION 2.

Colonial Office to Foreign Office.-(Received February 5.) Sir,

Downing Street, February 4, 1913. I AM directed by the Secretary of State for the Colonies to transmit to you, with reference to letter from the Colonial Office of the 12th December, 1912, copy of a telegram from the Governor of Hong Kong on the subject of the shipment at Calcutta of 245 chests of opium for Macao.

I am, &c.

Enclosure in No. 1.

Governor Sir F. May to Mr. Harcourt.

JOHN ANDERSON.

(Telegraphic.)

Hong Kong, January 30, 1913. SASSOONS report that 245 chests of opium have been shipped Calcutta, Macao.

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