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[This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
16765
CONFIDENTIAL.
RECO
Rec 8 MAY 14
No. 1.
[April 6.]
SECTION 2.
[15143]
(No. 126.) Sir,
Sir J. Jordan to Sir Edward Grey.—(Received April 6.)
Peking, March 23, 1914. I HAVE the honour to reply to the points raised in your telegram No. 47 of the 17th instant regarding the question of bringing to an end the trade with China in Indian opium.
The inspection of provinces under article 4 of the Agreement of 1911 is now proceeding. The province of Fukien, which from its southern latitude produces early crops, has already been inspected. One party, with Mr. Consular Assistant Blackburn, has inspected the northern half of the province from Foochow, while a second party, with Mr. Consular Assistant Turner, has inspected the southern half from Amoy. I have just received telegraphic information from His Majesty's consul at Foochow that both parties have completed their journeys, and have found no cultivation of
poppy in the province. The reports on the journeys will follow in due course, but meanwhile may "be taken for granted that Fukien Province will be placed upon the list of closed provinces. The importation of foreign opium into Fukien last year was 1,465 chests.
The inspection of the provinces of Chekiang and Hupei is fixed to commence on the 10th April, and telegraphic information as to their condition should reach me early in May.
it
The province of Honan bas never cultivated much opium, and it was on the ground that there was importation of the native drug that I declined to recommend the closing of the province last year. From information recently received, repressive measures against importation have proved effective, and I do not therefore think that an actual inspection of Honan is required in order to justify the province being placed upon the closed list.
I would propose that it should be declared closed simultaneously with Fukien, and any other of the provinces that may, after inspection, be found free from opium this spring.
The province of Kiangel presents a momentary difficulty. The reports from the province have not spoken definitely of cultivation, and there seemed every prospect that Kiangsi would find a place on the list of closed provinces. But the Kiangsi authorities have requested the Central Government that there should be no inspection of the province for poppy cultivation this spring, for the reason that the rebellion of last year has left the southern part of the province in a disturbed state, and the provincial authorities do not feel confident that their prohibitions of poppy cultivation have been observed. A report just received from His Majesty's consul at Kiukiang of a disturbance at Ningtuchow, in the south of the province of Kiangsi, confirms the reason given by the Chinese authorities.
Under article 3 of the 1911 Agreement "the closing of the ports of Canton and Shanghai to the import of Indian opium shall not take effect except as a final step." The postponement of inspection of Kiangai Province must therefore necessarily postpone any question of closing Canton and Shanghai.
Little or no native opium is grown in the province of Kuangtung which could probably at any time establish a claim to be placed on the closed list. In Kiangsu, the province in which Shanghai is situated, there is understood to be a considerable amount of cultivation, and in the natural course of things its closure could not take place at the earliest until the spring of next year.
tion.
As to the compensation to be awarded to the foreign opium merchants, I am in entire agreement with the views of His Majesty's Government, and consider that the present inflated price of foreign opium cannot be regarded as a fair basis for compensa- On the other hand, having regard to all the circumstances, I cannot concur in the opinion which has apparently been expressed in some quarters that His Majesty's Government are at liberty to cancel their agreement with China without incurring any obligations towards the foreign merchants who purchased opium in reliance upon that agreement. If His Majesty's Government decide that the continuance of the opium trade under present conditions is prejudicial to the best interests of Great Britain in China, then the fair course, in my opinion, is to make such arrangements as will
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