CO129-406 - Public Offices - 1913 — Page 8

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China has already of her own accord abrogated the Opium Treaty, which has therefore for some time past ceased to exist for all practical purposes, and thereby occasioned a huge accumulation of stocks, but now that the Wai-chiao Pu has asked for a revision of the treaty, an opportunity presents itself of arranging with China for the taking over of the stocks at such a price as will include the two years' interest, insurance, warehouse charges, &c., incurred by merchants on account of China's illegal action in the past.

"

'not a wasting We see it was stated in the course of the debate that opium is security, but can stand a considerable amount of keeping, and improve in the keeping."

We beg, however, to point out that Malwa opium, especially new drug, loses heavily in weight by keeping, and in any arrangement with China in respect of the stocks this very serious shrinkage should be also taken into consideration.

May we suggest that, before any definite arrangement is arrived at between His Majesty's Government and China, merchants may be afforded an opportunity of expressing their views?

Merchants have been repeatedly informed that the Government is not losing sight of the stocks, so we trust that Mr. Montagu's statement does not mean that matters are to be allowed to drift, and that the stock is to take its chance of being absorbed without any protection being afforded by His Majesty's Government.

We have, &c.

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

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

OPIUM.

CONFIDENTIAL.

[24101]

No. 1.

24090

REC? [May 2014 JUL 13

SECTION 2.

Sir J. Jordan to Sir Edward Grey.—(Received May 26.)

Peking, May 26, 1913.

(No. 122.) (Telegraphic.) R.

YOUR telegram No. 131 of 10th May. Summary of information in regard to opium question is being despatched by to-day's mail, and reports on journeys of investigation in Anhui, Hunan, and Shantung will follow immediately. Investigations show that opium cultivation has been completely eradicated, and I propose to add these provinces to the prohibition list.

(Repeated to India.)

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