CO129-445 - Public Offices - 1917 — Page 340

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

OPIUM.

CONFIDENTIAL.

[198817]

No. 1.

[October 16.]

SECTION 1.

Sir J. Jordan to Mr. Balfour.-(Received October 16.)

(No. 479.) (Telegraphic.)

Peking, October 16, 1917. MR. ALSTON'S despatch No. 224 of 24th July: Opium. Representation of combine is here, and, subject to your approval, I propose to take up official negotiations with Chinese Government at the request of Minister for Foreign Affairs.

I do this with reluctance, as in my opinion combine is not entitled to further consideration from His Majesty's Government, but there appears to be no other less objectionable course open to pursue in present circumstances.

Course I have proposed will give anti-opium agitators in China and abroad pretext for accusing His Majesty's Government of having exercised pressure on China to buy stocks. Chinese Government, howover, appear anxious to arrive at amicable solution, actuated, I do not doubt, by a desire to extricate President from embarrassing position and also to throw on His Majesty's Government share of public odium to which purchase of stocks may give rise.

Stocks in hand at date are, approximately-Shanghai, 1,200 chests; Hong Kong, 450 chests. According to Nanking agreement made by combine in January last, purchase money is payable in form of national bonds, which are to-day quoted at 40 per cent. of face value. Should you approve course I have proposed, negotiations can be commenced without delay, and I would instruct Mr. Wilton to take up duties of Special Opium Commissioner in connection therewith.

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