CO129-417 - Public Offices - 1914 — Page 348

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

OPIUM,

CONFIDENTIAL.

[47118]

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C

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342

47142

[September 7.]

REC

SECTION 1.

REG2 28 N14

No. 1.

India Office to Foreign Office.-(Received September 7.)

Sir,

India Office, September 5, 1914. WITH reference to your letter of the 14th July, on the subject of the opium stocks awaiting entry into China, I am directed by the Secretary of State for India in Council to forward a statement of the views of the Government of India, received by telegraph, and to say that the Marquess of Crewe agrees with the Government of India regarding the terms of the warning which it is proposed to give to the opium merchants as to the situation that will arise in the event of the closing of the three remaining provinces, and the discontinuance of licences in Shanghai.

am also to invite the attention of Sir Edward Grey to the representations of the Government of India as to the necessity of making careful enquiry before any proposal to close the three remaining provinces is approved, and to say that the Marquess of Crewe would be glad to have an opportunity of considering, in the light of these representations, any such proposal that may be made before a decision is arrived at or communicated to the Government of China.

I am, &c.

T. W. HOLDERNESS.

Enclosure in No. 1.

Government of India to the Marquess of Crewe.

August 19, 1914.

(Telegraphic.) P.

YOUR telegram dated the 22nd ultimo: Opium. We recognise that, on closure of three provinces mentioned and discontinuance of Shanghai licences, it will be impossible to admit opium to Chinese territories, and that it will be necessary to detain strictly in bond, until owners have made arrangements which the authorities approve for their removal altogether from Chinese territories, all stocks still undisposed of, i.e., all remaining stocks except stocks already sold to Chinese dealers but still in bond. Nor have we any objection to a warning being given accordingly. We should prefer that the position should be stated as above rather than as your telegram indicates, as, if a peremptory order were issued that on closing of provinces, &c., stocks should be literally removed, they would be scattered haphazard over the Far East-a plan which does not appear to offer the best Bolution of the problem which will be presented by the closing of provinces, either from our point of view or the traders', or as regards suppression of smuggling.

The question of stocks sold to Chinese dealers will, we presume, lie exclusively between the Government of China and the Chinese, unless cases should arise where the merchants prefer to retain ownership of opium thus sold in view of anticipated difficulties in recovering price agreed on.

We have no direct concern in discontinuance of Shanghai licences, but we presume that recent events have modified Jordan's expectations as to early ratification and application of the convention.

This

We also presume that in the matter of closing the remaining provinces, His Majesty's Government will insist on this being done in accordance with regular procedure laid down in the agreement, after an inspection next spring. inspection should be thorough (see in this connection Sir Jordan's despatch, dated 20th April last, as to closure of Fukien). It appears to us that the evidence afforded as to effective suppression within the terms of article 3 of the agreement of 1911 was distinctly less satisfactory in the case of Fukien than what was demanded in earlier cases. In Kwangtung, in view of Dr. Gibson's report of recrudescence of opium cultivation (see Sir J. Jordan's despatch of 25th March last), it seems particularly necessary that there should be a thorough investigation. Obviously effective suppression must be interpreted as suppression calculated to endure-not temporary merely.

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