CO129-425 - Governor Sir May - 1915 [10-12] — Page 372

COPY.

Fondosure!

Canton Opium Syndicate,

0.0.

950

Ric 7 JAN 16

367

1. In April 1915 an agreement was come to between the Opium

Combine and the Chinese Government. It was of a more or less private

nature. The Opium Combine held practically the whole stock of certified

Indian Opium lying in Hongkong and Shanghai, which under the various

Treaties and Agreements was destined for the China Market. By this

semi-private agreement the opium combine agreed to collect and pay to

the Chinese Government $3,500 on every chest of opium sold by them on

the understanding that the provinces of Kiang Si, Kiang Su and Kwong-

-tung were left open to the circulation of opium. This at once hastened

the absopṛtion by China of the stock of opium in Shangai, but for a

number of reasons there was very little movement of Hongkong stocks.

2. A new agreement was then made with the Hongkong Opium Combine.

The Commissioner for the suppression of opium in Kwangtung made an agreement with the opium comaine to purchase the whole of the stock of

certified opium in Hongkong and to take delivery within 18 months

from lat. October, 1915. The price agreed on was practically the

market price of the day, but no interest was allowed. The $3,500 tax already agreed on was to be paid by the purchasers. In practice on delivery a chest of opium, the combine receive a receipt for $3,500 signed by the Commissioner which is forwarded by the combine to Shan- -ghai. 8500,000 has been deposited by the Commissioner as security.

3.

A syndicate has been formed for the purchase and sale of this. opium in Kwang Tung. The theory of the agreement from the suppression

point of view is roughly as follows:-

(1). The Canton Government have purchased the whole of the Indian Opium that under Treaty has a right to go into Kwang Ting.

(2). That the opium will be prepared and sold but only to licensed persons who are known to have the opium craving. The prepared opium will contain an ingredient that will gradually cure persons using it from the opium habit.

(3). At the end of 18 months the supply of opium will be finished, and all opium smokers will be cured of their craving. The opium

question