CO129-416 - Public Offices - 1914 — Page 98

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

C. O. 6406

RECR

OPIUM.

J

REG 19 FEB 14

CONFIDENTIAL.

[January 17.]

SECTION 1.

[2318]

Sir J. Jordan to Sir Edward Grey.-(Received January 17.)

No. 1.

..

Peking, January 16, 1914.

(No. 5.) (Telegraphic.)

GREEK Government agree to sign Opium Convention. MY despatches No. 2 of 3rd January and No. 9 of 12th January: Opium. With special reference to the latter, the Minister for Foreign Affairs communicated to me to-day verbal proposals for which he requests the sympathetic consideration of His Majesty's Government. Under these proposals, which do not appear to have been worked out in detail, China offers to take over existing stocks of certificated opium at a moderate and reasonable price, payment to be made by instalments. The Chinese Government would like to burn the entire stocks immediately after purchase, but they realise that in their present impoverished condition this may not be practicable, and, as public opinion will not tolerate the establishment of an opium monopoly, they propose to let the ultimate disposal of the stock stand over for the present.

I foresee grave objections to the Chinese proposals of 9th January, the least of which would be that, in the likely event of China destroying the stocks, public opinion in China and abroad would support repudiation of purchase money, which it would be then impolitic to press for. I would strongly recommend in preference to the Chinese proposals a scheme of the kind outlined in my despatch No. 2, whereby the Govern ment of India would take over the stocks for re-exportation.

Number of certificated chests unsold on 1st January was 11,739, of an approximate value, at prevailing prices, of 8,000,000l., but under my scheme this would be subject to large reduction.

We seem, so far as I can see, to have reached a stage in history of the opium question when we must either make a virtue of a necessity and remove stocks, which, I venture to think, ought never to have been sent (see my telegram No. 128 of 8th June, 1912), or risk national dishonour of ending opium traffic in a holocaust at the expense of China.

(Sent to India.)

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