CO129-406 - Public Offices - 1913 — Page 253

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

OPIUM.

CONFIDENTIAL.

[40957]

Sir,

No. 1.

[September 5.]

SECTION 1.

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

THE opium question.

September 5.)

17, St. Helen's Place, London, September 4, 1913.

It is rumoured that the Indian Government propose to increase the quantity of uncertificated opium to be offered at auction next year.

We are urged by India to address you on the subject, and to request that you will press upon the Government of India the inadvisability of any increase being made in the quantity of uncertificated opium offered for sale until the stocks of certificated in China have been worked off, as these stocks are being very slowly absorbed, and still amount to some 22,000 chests.

The total clearances from stocks in China from 6th February last to 29th August, amount to 8,918) chests, or say 1,250 chests per month average, so on that basis it would take 18 months to dispose of the remainder of the stock, but the continued closing of provinces to Indian opium will probably lengthen out this period to two years at least.

The moral effect which an increase in the quantity of uncertificated opium would have upon the China market would undoubtedly lead to a fresh crisis, and any such increase would but tend to assist smuggling from Macao and elsewhere. The necessity for any increase is not apparent, and the fact that the present maximum is amply sufficient is proved by the sold stocks in Government godowns in Calcutta not yet taken delivery of, amounting on the 4th August to the large total of 2,464 chests.

The expectation of a lucrative smuggling business being possible from Macao is demonstrated by the enormous sum now paid by the opium farmer at Macao to the The former farmer paid Portuguese Government as annual rental for the farm. 140,000 dollars per annum as rent. On the 1st ultimo the Portuguese Government invited tenders for the concession, fixing an upset price of 460,000 dollars, and accepted a tender of 1,056,666 dollars a year for five years. There were several tenders of between 900,000 dollars and 1,000,000 dollars.

Any increase in the quantity sold by the Indian Government would only tend to assist this illegitimate trade at the expense of the existing stocks of certificated opium, and we beg, therefore, that you will urge upon the Indian Government to defer increasing the quantity till these stocks are cleared.

We have, &c.

E. D. SASSOON AND CO. DAVID SASSOON and Co. (LIMITED).

[1884 e-1]