CO129-405 - Public Offices - 1913 — Page 385

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

OPIUM.

CONFIDENTIAL.

[5894]

No. 1.

384

[March 28.]

SECTION 2.

Sir,

Foreign Ofice to London Chamber of Commerce.

Foreign Ofice, March 28, 1913. SECRETARY Sir E. Grey has had under his consideration your letter of the 13th January last on the subject of the Indian opium trade in China.

The delay in returning an earlier reply to it is due to the fact he was in communi- cation with His Majesty's Minister at Peking in regard to some of the points to which your letter referred.

With regard to the penultimate paragraph of your letter, I am to state that Sir E. Grey cannot accept the view that the Government of India, whose action has been strictly in accordance with the Agreement of 1911, and has thereby progressively reduced the amount of opium available for the China market, are responsible for the accumulation of the stocks at Shanghai and Hong Kong, or are under any liability to repurchase them.

The Government of India, at the sacrifice of considerable revenues, have, by fixing a high upset price, relieved the dealers from the necessity of supporting the market, and have practically suspended the sale of certificated opium with effect from the beginning of this year. They have also, as you are aware, announced that sales of certificated opium will be formally suspended after the 1st proximo, and they have, in addition, reduced the amount of uncertificated opium, to be offered for sale in the year 1913, from 13,200 chests to 9,000 chests.

I am to add that the question of the stocks is receiving the careful attention of His Majesty's Government.

[2850 ee-

-2]

I am,

&c.

W. LANGLEY.