CO129-479 - Governor Sir Stubbs - 1923 [1-3] — Page 108

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since the Government sold the raw opium to the Farmer at a fairly high price, he was often tempted to purchase Yunnan opium from Chengtung, and the Shan States to the North of Siam, as this was usually cheaper than the Government opium.

5. The Farmer generally divided bis farm up into districts, to each of which was appointed a sub-Farmer, styled Sa-Kongsi, and the sub-Farmer, in his turn, appointed retailers who sold the drug to the consumer in smoking deas.

The profit which the Farmer allowed to the sub-Farmer was usually one tical per tamlung, or tael (37.5 grams, vide section 3 of Opium Law, B. E. 2464). The retailer, as a rule, was allowed only a small profit on the price of the opium sold by him-the major part of his profits being obtained from the sale of the "dross", or ashes, left in the opium pipes by consumers. (Vide also paras 53-55).

6. The methods described above were in use for a very long period and the profits obtained by the Opium Farmers were large, despite the considerable revenue paid to the Government, Vide Annese VIII.

7. At the beginning of this century a strong movement was started for the suppression of opium smoking, notably by certain interests in the United States of America, which country was faced with the problem in the Philippines. The views of the Anti Opium League were also represented in the British House of Commons. As a result of this movement the Government of the Philippine Islands, in 1903, appointed a Commission under Bishop Brent to investigate the conditions of the opium traffic in different countries in the East. (They did not visit Siam). In 1904 this Commission presented its report, which recom- mended, inter alia, that prohibition should be made effective in the Insular territories within three years.

8. The Government of the Philippines accepted the findings and recom- mendations of this Commission to a large extent, and a strict prohibitory law came into force on March 1st, 1908. They realised however, that a prohibitory law would be largely nugatory if smuggling from other countries could not be effectively prevented, and that for this purpose the co-operation of the exporting countries was necessary. There appears to be no doubt that this conviction led to the United States of America being the prime mover in calling an Inter- national Commission to meet at Shanghai in February, 1909.

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9. While these events were taking place, the Siamese Government had also realised the trend of modern opinion, and had decided to adopt a policy of gradual suppression. The first step was obviously to obtain a better control

of the traffic in opium, and an excellent opportunity for doing so presented itself

in the year 1907.

10. Owing to the handsome profits made by the Opium Farmer, and the

increasing prosperity of the country, competition was very active at the

periodical sales of the Farm and ever larger amounts were offered for the rights conferred by the monopoly. In 1906 this resulted in an enormous sum being bid for the privilege of selling opium, but it soon became evident that the Farmer

would be unable to fulfil his contract. Accordingly at the beginning of 1907,

the Government took over the Farm, together with the Opium Factory where the drug was prepared for consumption,

11. At this stage the Government merely replaced the Farmer, and carried on the sales through sub-Farmers (Sa-Kongsi ), as before. From a

financial point of view the results were excellent, since the profits of the

sub-Farmers, or middlemen, were limited to 1 tical per tamlung. Vide also para 20.

12. By this time the question of opium had become an international one, and a public declaration of the opium policy of Siam was made by His late Majesty, in his annual speech from the Throne, on September 21st, 1908. (Annexe I). This was followed soon after, by the first Opium Commission held at Shanghai in February 1909, at which Siam was represented, and a statement of the policy of the country was presented to the Commission by the

Siamese Delegation. (Annexe II ).

13. Since in any farming system, bowever modified, the Farmer will always try to sell as much as he is able, it was speedily apparent that the

system then in force was incompatible with a policy of ultimate suppression. The Government realised that the sale of opium should be entrusted, as far as

possible, to officials on fixed salaries, but adequate control over these officials

was, unfortunately, almost impossible, unless the opium were packed for retail in such a manner that it could not be tampered with by the salesmen. It was

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