CO129-406 - Public Offices - 1913 — Page 100

(Telegraphic.) P.

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Enclosure 2 in No. 1.

Mr. Harcourt to Governor Sir F. May.

YOUR telegram of the 5th March.

Downing Street, March 6, 1913.

After much discussion, Portuguese representative here has accepted 260 chests as maximum for local consumption and 240 as maximum for export, and has agreed that, if Hong Kong makes arrangements with Mexico for certificates on the lines you suggest, Macao shall adopt the same system. I do not think it possible to induce Portuguese to reduce further the number of chests.

Portuguese Government wish to be assured that transhipment of opium for Macao will be allowed at Hong Kong, as they desire to avoid expense of chartering steamers from India. Do.you see any objection to giving such an assurance?

They allege that dues have been or may be charged on transhipments. I presume this is incorrect, but should be glad to learn.

Telegraph reply.

(Telegraphic.) P.

Enclosure 3 in No. 1.

Governor Sir F. May to Mr. Harcourt.

YOUR telegram of the 6th March, in cypher.

[Received March 7, 1913.]

I regret that this Government cannot accept 260 chests of opium as a reasonable allowance for consumption locally at Macao. Such a diminished figure will prejudice seriously success of the proposed Government opium monopoly at Hong Kong, and will render it difficult to suppress smuggling by coasting vessels to Philippine Islands and elsewhere. Government of Hong Kong is therefore not willing to amend the resolution which accompanied Sir F. Lugard's despatch of the 6th September, 1911, in order to allow of the transhipment of Indian opium to Macao, unless the allowance for local consumption there is reduced to 180 chests per annum.

(Telegraphic.) P.

Enclosure 4 in No. 1.

Mr. Harcourt to Governor Sir F. May,

YOUR telegram of the 7th March.

Downing Street, March 11, 1913.

I am consulting Foreign Office in view of possibility of rupture of negotiations if your proposal is pressed. In the meantime I should be glad to have a reply to the question as to transhipment duties (see my telegram of the 6th March).

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