CO129-485 - Governor Sir Stubbs - 1924 [8-12] — Page 474

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(b) The effect on Japan. It seems at least possible that if a licence granted to (say) the .B.K. for a Transaction specifically approved by the competent Japanese authority, is rendered valueless because Nemazee (who appears to be an essential link in the transaction) cannot be authorised to supply the opium, the Japanese Government may regard the refusal to issue licences toNemazee as a dodge to get round the

understanding arrived at at Geneva, i.e., as a

measure directed against them, and may take offence

accordingly. The result might be another outburst of

indignation, which it would seem desirable to avoid.

There seem to be two possible courses:-

To tell Hong Kong that Nemazee may be licenced

to take part in transactions involving the supply of

opium in circumstances which would be regarded as

justifying the transhipment of consignments at Hong

Kong; or

E. To agree with the Home Office and uphold

theGovernor's view that no licence should ever be

granted to Nemazee. In this case it would seem

desirable to suggest that Foreign Office should explain

confidentially th Tokio that licences under the Hong

Kong 1923 and 24 Opium Ordinances can only be issued

to "firms of known probity and good standing" and

that in view of Nemazee's known connections with the

illicit Trade, his firm is not regarded as suitable

to be licenced by the Hong Kong Government to trade

in opium.

Of these alternatives A. would appear to be

the more just course to adopt, since Nemazee cannot

be convicted of any offence; but, inasmuch as it would

be a weakening in the anti-Nemazee Campaign (we have

in fact at the instigation of the Home Office even

gone so far as to urge the Governor to take advantage

of

of every power he possesses, to make the Colony too uncomfortable for Memazee) it would certainly be strongly resisted by the Home Office and probably

aslo by the Foreign Office.

(Intld) J.J.P.,

14/2/25.