CO129-486 - Public Offices - 1924 — Page 534

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D.0. No.11484

Confidential

II

Finance Department,

Calcutta, the 15th January 1924.

530

My dear Mo Watters,

Please refer to the enclosed statement showing the results

of the last thirteen opium sales at the auctions held monthly in

Oalcutta. It will be seen that for six monthe the market has been

entirely in the hands of Mesars. M.1.Sassoon and Sons, Limited.

As you are aware, the Government of India now dispose of the

bulk of their provision opium by direct export at a fixed price to

the importing Governments. For the casual exporter, however 3000

chests are sold annually by auction in Calcutta. The bulk of this

goes to Saigon as will be seen from the enclosed statement.

It is understood

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though there is no official confirmation that Messrs. Sassoon have recently come to an arrangement with the Saigon Government under which the latter now obtain their opium

solely through that firm, The outlet for the disposal of provision

opium purchased at the auctions being limited, the effect of this

arrangement has been to give Messrs. Sassoon almost complete control

of the opium export trade. The other merchants are either unable

or unwilling to outbid Sassoon and to hold the stock thus obtained

till the Saigon Government are forced to go back on their arrange- ment and to come to them. As this arrangement suits both the

Saigon Government and Messrs. Sassoon, there is no reason to

expect an early modification of the present position.

I bring this matter to your notice as it would appear from the correspondence following upon the 3eoretary of State's despaton No. 84 Revenue of the 11th 3eptember 1919, that the auction rate

for opium in Caloutta is to some extent regarded as an index of the market price of the commodity. If the other merchants cannot

expect to dispose of the opium, they will not riak bidding against gassoon and being "landed" with it, and competition in any real

aense is for the time being non-existent. For example, at the

January