CO129-470 - Public Offices - 1921 — Page 610

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

OPIUM.

CONFIDENTIAL.

F 1324/15/10]

No. 1.

*[April 13.]

SECTION 2.

607

i

(No. 77.) My Lord,

Sir C, Eliot to Earl Curzon.-(Received April 13.)

Tokyo, February 28, 1921. YOUR Lordship will observe that in Mr. Butler's despatch No. 40 of the 20th September, 1920, a copy of which is enclosed in my despatch No. 73 of the 26th February, the director of the Opium Monopoly Bureau in Formosa is quoted as saying that early last year the Indian Government had offered the bureau opium at 3,000 rupees per 100 kin.

I am not aware that any such offer has been made either to the bureau or to the Japanese Government, and I believe that a misunderstanding has arisen in connection with the proposal which Sir B. Alston was instructed by your Lordship's despatch No. 203 of the 17th November, 1919, to submit to the Japanese Government for the conclusion of an agreement with the Government of India providing for a system of direct sales of opium to the Japanese Government. In making this proposal Sir B. Alston communicated to the Minister for Foreign Affairs a copy of the agreement concluded with the Government of the Straits Settlements under which the price of opium was fixed at 3,000 rupees per chest.

The Japanese Government do not appear to have been informed, as instructed by your Lordship's despatch No, 220 of the 2nd December, 1919, that it was proposed by the Government of India that the price of opium sold to them should be fixed at 4,000 rupees per chest. This despatch was received ten days before your Lordship's despatch No. 203, and it seems probable that it was overlooked. It is, however, possible that it was considered preferable to await a reply from the Japanese Govern- ment as to whether they were prepared to negotiate an agreement as suggested.

As an answer to Sir B. Alston's proposal has not yet been received from the Minister for Foreign Affairs, I have enquired whether one may shortly be expected, and I have informed the Vice-Minister that the price originally proposed by the Government of India was 4,000 rupees per chest. I stated, however, that in view of the time which had elapsed since the offer was originally made, it was possible that the price had since been changed.

I have, &c.

C. ELIOT.

[6071 -2]