CO129-426 - Public Offices - 1915 — Page 566

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[This Document is the Property of His Bellinic

OPIUM.

CONFIDENTIAL.

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¡REC2 Ree 5 JUL 15

558

[April 15.]

SECTION 1.

[44505]

(No. 67.) Sir,

No. 1.

Sir J. Jordan to Sir Edward Grey.-(Received April 15.)

Peking, March 22, 1915. IN my despatch No. 60 of the 6th February, 1913, I had the honour to refer to the proposals made by the Chinese Foreign Minister in connection with the taking over of the stocks of Indian opium and the establishment of an opium monopoly by the Chinese Government. These proposals were subsequently dropped owing to official apprehension of public opinion.

On the 15th instant the Acting Minister of Finance, Mr. Chou Hsueh-hei, at an interview enquired whether I thought that His Majesty's Government would raise objections to the transfer of the stocks to the Chinese Government with a view to the establishment of an official monopoly in opium. He admitted that immediate pay- ment could not be made, but he was ready to give guarantees for appropriate instalments from the proceeds of the sales.

I reminded Mr. Chou that a scheme on somewhat similar lines had been put forward and dropped by the Chinese Government two years ago, and asked him whether it was proposed to extend the monopoly over the whole of China, or limit it only to those provinces into which the entry of Indian opium had not yet been prohibited. I also enquired whether he had taken into due account the probable opposition which the creation of an official opium monopoly would meet from native opinion.

Mr. Chou admitted that his scheme might encounter considerable opposition. Although it had no definite shape at present, he thought it would probably cover the whole of China, and be on the lines of the Japanese monopoly in Formosa (see enclosure No. 2 in my despatch No. 60 of the 6th February, 1913).

He confessed that the number of smokers to-day was probably not less than 2,000,000, of whom perhaps 10,000 were to be found at Peking. Opium was being smuggled into China by sea and by land, and the province of Kansu had stocks of native opium sufficient to supply the inhabitants for several years. He maintained, however, that the vice was confined to the confirmed smokers, and that few of the younger generation were taking to the habit. In reply to a further question he said that, should the monopoly yield a large revenue, as was anticipated, it would be continued after the stocks were consumed and the supply renewed by importation from abroad.

I expressed my concern at the retrograde step which China would be taking in the suppression of opium if sales were authorised in the closed provinces, and I told the Finance Minister that, while His Majesty's Government would probably not object to a legitimate scheme for disposal of the stocks, they would certainly not countenance anything which would permit of the sale of the drug in the listed provinces.

Mr. Chou said that he would think over, the matter again, and would consult me as soon as he had formulated detailed proposals.

Two days later, in conversation with the Minister for Foreign Affairs, Mr. Lu Cheng-hsiang, I referred to a recent request made by the Chinese Government for the joint inspection of the province of Kansu and the new dominion.. I reminded him that references had been made on various occasions to the examination of Kiangsu and Kwangtung, for which no request had as yet been made by the Chinese Government.

The season for the inspection of the latter province had now passed, and I was not prepared to entertain any proposal for a joint inspection this year. As to Kiangsu, the time was drawing near when it would be too late also to undertake joint inspection. I gave Mr. Lu an opportunity to touch on the subject of the Finance Minister's scheme, but he made no allusion thereto.

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