CO129-405 - Public Offices - 1913 — Page 91

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

2663

2:02 [December 8.24 JAN 13.

90

OPIUM.

CONFIDENTIAL.

[51607]

No. 1.

SECTION 1.

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Sir,

Messrs. E. D. and Messrs. D. Sassoon and Co. to Foreign Office.-(Received December 3.)

17, St. Helen's Place, London, December 2, 1912. WE have the honour to refer once more to the opium question. The Chinese Government, having played ducks and drakes with treaties for so long with impunity, have now become bolder, as the following telegrams from China will

show :-

Shanghai telegram 25th November :-—-

"It has just come to our knowledge that the Chinese Criminal Code published in May last, and approved by President, contains ten articles making those who import, sell, prepare, or smoke opium liable to penal servitude. This leads us to believe that provinces are acting on the authority of Central Government."

Shanghai telegram 28th November :-

"All provinces are being closed to Indian opium. Impress Foreign Office serious- ness of situation. General opinion Central Government responsible for trouble."

The first of these telegrams clearly proves the perfidy of the Central Government, but we cannot believe that His Majesty's Government, in face of existing treaties and agreements, will quietly accept the position. Had the article been Manchester goods or any other commodity than opium there would have undoubtedly been a great agitation against China's persistence in dealing with treaties as if they had never been made. If allowed to go unchecked in respect of the opium trade, it will be some other trade to-morrow which will be attacked.

As regards opium, we think His Majesty's Government is doubly responsible both morally and legally to see justice done, firstly, because the Government of India is the seller, and secondly, because the Indian Government certifies a certain quality of opium for China, and sells it at special prices with the express intention that it should go to that market alone. Buyers, however, in spite of treaties, find their purchases stopped at the very gates of China.

Malwa opium, as you are doubtless aware, was formerly sold in the Bombay market subject only to pass duty, and buyers could then ship it away, but the Indian Government initiated a special permit for shipment to China, and were selling at a premium of 2,500 rupees per chest or more for that right. If the opium is refused admission into China, the Indian Government is certainly liable to refund this premium, to say nothing of other damages, and the same applies to certificated Bengal opium.

Since the news reached India of the Central Government's action, the price of these Malwa permits (or "revanahs" as they are called in India) has dropped from 2,443 rupees per chest on 14th August to 1,275 rupees on Saturday last, 30th November. Bengal opium has also fallen in value, but as there have been no public sale of late it is difficult to give an exact quotation. The auctions to-morrow will, we fear, go very badly.

"Since these difficulties with China began, the Indian Government has unduly aggravated the situation by selling large quantities of uncertificated opium for which there was no legitimate demand. This is testified to by the fact that the quantity already sold by the Indian Government, but still lying in Government godowns Ancleared, exceeds 5,000 chests, Matters have now come to such a pass that there is absolutely no demand in China for Indian opium; there is all the more reason, therefore, why the Indian Government should cease selling, until some understanding has been come to with China.

The opium trade is only in a few hands, and if they refrain from buying at the auctions there will be a crisis. If they buy to support the market the position will be worse than it is now. Those in the trade are not all wealthy men, and to many it will mean bankruptcy.

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