6
waiting for the result of the inspection of the unclosed provinces, was a distinct breach of this policy. Mr. Alston's attention had been drawn to the Customs notifi- cation at Shanghai, but he had forborne to protest, as he did not wish to interfere with any arrangements for the taking over of the stocks by the Chinese Government. He would now, however, enter a protest against the premature closing of Canton and Shanghai, and he hoped that this action would strengthen the hands of those who desired the Government to take over the stocks. Mr. Alston gave Mr. Ezra to under- stand that in principle he favoured Government purchase, if it could be arranged on equitable terms, as affording the best solution of the stock problem.
Mr. Ezra thanked Mr. Alston for his sympathetic attitude, Peking, May 8, 1917.
Enclosure 5 in No. 1.
010
T
I confidently claim that this legation has never wavered in carrying out to the full, and more than to the full, the obligations imposed by the agreements of 1907 and 1911,
whereas the Chinese Government has on several occasions acted in contravention thereof. It is certain that a spirit of candour and co-operation on the part of the representatives of both Governments is essential to the effective completion of the policy of suppression on which both Governments have determined, and the premature closing of Canton and Shanghai seems to me to furnish an additional example to many previous ones of the lack of such candour and co-operation on the part of the Chinese Government.
Pending the receipt of the reports of the joint inspection of the provinces now proceeding, I have the honour to request that your Excellency will give immediate instructions to secure adherence to the provisions of the 1911 agreement, and that you will favour me with an early reply.
I avail, &c.
B. ALSTON.
1
Customs Notification No. 870.
IN accordance with instructions received to-day through the Inspector-General of Customs no further importation of opium, either from bonded gudowne or direct, is permitted.
Sir,
Custom House, Shanghai, April 1, 1917.
F. S. UNWIN, Commissioner of Customs.
Enclosure 6 in No. 1.
Mr. Alston to Chinese Minister for Foreign Affairs.
Peking, May 4, 1917. I HAVE the honour to invite your Excellency's attention to the provisions of the Opium Agreement of 1911 for the gradual diuinution of the production of opium in China and of the annual export from India with a view to total extinction in 1917.
As your Excellency is aware, although the agreement provided for a progressive reduction in the number of export permits for Indian opium declared for shipment to or for consumption in China, until permits for only 5,100 chests could be issued in 1916, and none in 1917, the Indian Government, in order to prevent the accumulation of stocks and to co-operate more effectively with the Chinese Government in the policy of opium suppression, ceased issuing such permits altogether in 1913, and there has since been no export of Indian opium to China. A quantity of the opium exported prior to that time is still in bond. and according to article 8 of the agreement may be imported into any treaty port of China without let or hindrance,
Your Excellency is also aware that since the conclusion of that agreement His Majesty's Government have never failed to accede to the requests made by the Chinese Government from time to time for the joint inspection of the provinces, and that as a result of such inspections one province after another has been placed on the list of those into which His Majesty's Government have agreed that no Indian opium shall be con- veyed. At the present moment, in accordance with the desire of the Chinese Government, investigations are being conducted by several of His Majesty's consular officers in conjunction with Chinese officials with a view to establishing by clear evidence that the cultivation and import of native opium has been effectively suppressed in the provinces of Kiangsu, Kwantung, Kiangsi, Yunnan, Kueichow, and Shensi, so that these six provinces, the only provinces still open to Indian opium, may be likewise closed in accordance with article 3 of the agreement.
Article & further provides that "the closing of Canton and Shanghai to the import of Indian opium shall not take effect except as the final step on the part of the Cuinese Government for the completion of the above measure."
Such being the position of affairs, it was with considerable surprise that I learned that Customs notifications were issued at Canton and Shanghai on the 1st April last to the effect that no further importation of opium, either from bonded godowns or direct, would be permitted. This notification was issued without any previous cons.ltation whatever with this legation, and I am at a loss to explain how the sudden closing of Canton and Shanghai is to be reconciled with the article in the agreement above quoted.
Enclosure 7 in No. 1.
Opiumt Agreement,
This agreement, made at Shangbai on the 6th day of February, 1917, between the Shanghai Opium Combine by its chairman, duly authorised in this behalf (herein- after called "the combine") of the one part, and Wong Kwei Chek, of 117, Szechuen Road, merchant and commission agent, and a citizen of the Republic of Portugal (hereinafter called "Mr. Wong ") of the other part.
WHEREAS, in pursuance of his agreement with the combine, dated the 4th day of April, 1916, Mr. Wong has since that date rendered valuable services to the combine in the prevention, detection, and suppression of opium smuggling and illicit trade in opium as is evidenced by the large number of successful prosecution of offenders and the confiscation of large quantities of illicit opium;
And whereas, though it was stipulated in clause (5) of the aforesaid agreement that Mr. Wong should be remunerated for his services, he was not so remunerated, nor was be reimbursed the heavy expenses incurred by him in the prosecution of bis work;
And whereas, for the considerations and compensation hereinafter mentioned and provided, the said Mr. Wong agrees to waive his claims under the aforesaid agreement;
And whereas, he has also, at the request and on behalf of the combine, for several months past carried on prolonged negotiations with the Chinese Government for the purchase by the latter of the residue of the combine's stock of opium on the 31st day of March, 1917, negotiations which have been brought to a successful issue by the siguing of the agreement of the 28th January, 1917, between the said combine and the Chinese Government;
And whereas, the said Mr. Wong claims the sum of 800 taels per chest as com- mission due to him under a promise made to him by the combine, which the said combine hereby confirms, and which will form part of the considerations and compensation hereinafter mentioned and provided for;
And whereas the said Mr. Wong has, at the request of the said combine, successfully secured from the Tuchun of Kiangsu adequate protection for opium duly labelled and certified as having paid the special contribution payable under the agreement between the Shanghai and Hong Kong Opium Combines and the special envoy for the prohibition of the sales of opium in the provinces of Kiangsu, Kiangse, and Kwangtung, dated the 1st day of May, 1915;
And whereas the said Mr. Wong rightly claims compensation for the successful conclusion of his labour as aforesaid;
And whereas the said agreement with the Chinese Government contemplates the purchase by it of opium to the value of 10,000,000 taels at the rate of 8,200 taels per chest, payable in Chinese Government 6 per cent. bonds of the first year of the Republic, which would roughly mean the purchase by the Government of about 1,215 chests out of about 2,100 chests to-day in existence as belonging to members of the said combine;
And whereas the said Mr. Wong, for the considerations and compensation hereinafter mentioned and provided for, has agreed to purchase in the manner and fort herein stipulated the residue of the combine's stock of opium as may be left over ou
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