2
We hope His Majesty's Government will bear in mind the question of damages against the Chinese for breach of treaties and consequent losses, but as a first step we trust the Indian Government will be induced to stop all sales in the meantime.
May we request that an urgent telegram be sent to-day to India to cancel to-morrow's sale? In a crisis like this only prompt measures will meet the case.
We have, &c.
E. D. SASSOON AND Co.
DAVID SASSOON AND CO. (Limited).
[This Document is the Property of His Britannic Majesty's Government
OPIUM.
CONFIDENTIAL.
[51977]
No. 1.
[December 5.]
SECTION 4.
2663
Reco
1
J
Sir,
Messrs. E. D. and Messrs. D. Sassoon and Co. to Foreign Of
December 5.)
17, St. Helen's Place, London, December 4, 1912. WITH reference to our letter of the 2nd instant, we have now the honour to put before you the following very grave telegrams received under yesterday's date from Shanghai
"All shops in Wuhu closed by authorities, and native wholesale merchants have Wuhu dealers have been compelled to undertake to cease business immediately. repudiated all their former purchases from Shanghai, and it is reported tutu has Soochow authorities have issued promised them full protection in the event of claims. notifications that trade must cease end of this month. Notice states that the prohibition is under instructions of Yuan Shil-kai contained in new Criminal Code. Conditions are bearing very heavily on all All provinces are being closed. What are merchants to do with their stocks? We beg relief from an intolerable position."
It is now manifest beyond any possibility of doubt that this crisis in the opium trade is due solely to the machinations of the Central Government and of the President himself. In the past, owing to the difficulties experienced in exercising efficient control over the provinces, His Majesty's Government desired to show Yuan Shih-kai some consideration, so did not press him too much, but he now shows himself in his true colours. We learn from a most reliable authority that this action is animated by pure spite against the British Government for an imaginary grievance in connection with the part they took in the loan question, and more particularly the Crisp loan. This fact is now confirmed by the Times" Peking correspondent in yesterday's issue, and it is very clear that the intention is not to confine this pin-prick policy to opium alone.
It is much to be regretted that His Majesty's Government did not take much stronger action when the breaches of treaty first began under the old régime; playing into China's hands by concluding the additional agreement to the Chefoo Convention, and allowing the duty to be trebled, has encouraged the Chinese authorities in the course they are now pursuing.
The Indian Government too are responsible to a very considerable extent for the present bad state of affairs, in that they instituted the certificated and uncertificated opium policy. The effect of this policy was disastrous. It, firstly, caused a scarcity of opium available for China, thus producing inflated prices as a natural consequence, and, secondly, the sale of excessive quantities of uncertificated opium at low prices further handicapped the legitimate trade by encouraging extensive smuggling through
Macao.
On the Bombay side they raised the pass duty from 600 rupees to 1,200 rupees per chest, and placed a premium on the permits for shipment to China, thus raising prices considerably, and putting a very heavy burden on shippers, while getting every rupee that was possible out of them.
Surely it is the duty of both the Home and Indian Governments to take care that treaties are respected by China. In spite, however, of our entreaties and protests, matters have been allowed to drift into this impass. It is incredible too that at such a moment of crisis the Indian Government should persist in forcing their opium upon an unwilling market, and placing shippers in a worse position than ever. We venture to say that if such a thing occurred in this country instead of in India in regard to any other commodity, it would not be tolerated for a moment.
We are quite aware that in this country opium is not popular with a certain section of the community, but we beg to point out that His Majesty's Government in taking up the cudgels for the purpose of making China respect treaties, is not doing so with any
idea of maintaining the opium trade, but on the contrary of extinguishing it, but in a proper equitable and agreed upon manner.
The British public as a whole is too generous and fair-minded to wish fellow- subjects to be ruthlessly crushed out of existence through no fault of their own, but
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