CO129-426 - Public Offices - 1915 — Page 204

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[This Document is the Property of His Britannic Majesty's Government.44156

OPIUM.

CONFIDENTIAL.

REC

REG 27 JAN 15

[October 26.

SECTION 1.

200

[63368]

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received October 26.)

(No. 300.) Sir,

Peking, August 17, 1914. ON receipt of your despatch No. 173 of the 17th June, I requested His Majesty's consul-general at Shanghai to do what he could to encourage the reduction of opium- selling licences within the international settlement at that port.

I have the honour to enclose copy of Sir Everard Fraser's reply, which transmits copy of a letter from the chairman of the International Municipal Council of Shanghai. The chairman argues that reduction of opium-selling licences would have no effect ou the sale or on the consumption of opium.

The views in the chairman's letter are not, in my opinion, tenable, either in the light of past undertakings or of present policy. I have commented on his letter in a despatch to His Majesty's consul-general, copy of which I have the honour to enclose herewith, and I have requested His Majesty's consul-general to again approach the chairman in the matter of a reduction of the licences.

I have, &c.

Enclosure 1 in No. 1.

J. N. JORDAN.

(No. 94.) Sir,

Consul-General Sir E. Fraser to Sir J. Jordan.

Shanghai, July 27, 1914. ON receipt of your despatch No. 62 of the 13th instant, I communicated to the chairman of the Municipal Council the regret of His Majesty's Government at the increase of licensed opium shops in the settlement, and your desire that I should do what I could to encourage the reduction of such licences.

I also sent Mr. Pearce, unofficially, the enclosure in Sir Edward Grey's despatch No. 173.

The enclosed reply was received on the 25th instant from the chairman, who also spoke with me on the subject.

29

Mr. Pearce told me that his Council felt that, without a direct mandate from the ratepayers, they would not be justified in treating prohibited the sale of an article that had come to Shanghai under treaty, and on which the Chinese Government still collected duty. The reduction of licences, as his letter shows, the Council could undertake only as part of a scheme of gradual prohibition, as otherwise it would tend to establishing a monopoly.

The fact that the number of licences increases, in face of a great rise in their cost, seems to indicate that the demand is very keen. My information is that comparatively few shops sell the pure Indian drug on account of its high cost, and that within the Bettlement in private hands there are very many chests of Indian and native drug.

Even were the municipality to close all the opium shops, there is under the land regulations, so far as I know, no power to search the premises of natives or foreigners for opium, and the presence of foreigners of nations not parties to the Opium Convention would render private use of the drug very difficult to stop, even could the whole of the overt stock be removed from Shanghai.

I bave, &c.

E. H. FRASER.

P.S. For convenience of reference copy of the letter referred to by Mr. Pearce is enclosed.

[2301 cc-1]

E. H. F.