CO129-487 - Others & Individuals - 1924 — Page 530

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A request has been made for the views of Dr. Lillspaugh regarding a proposal to place certain restrictions on the export of opium from Lersi ports in British ships, and also rearding the restriction of the cultivation of opium in Persia.

It is the opinion of Dr. illspaugh that the regulations proposeu for the shirmant of Persian Opium in British shing will have the effect of prohibiting või malimentay and the views of pr, Lilijuęb ure therefore based on this assumption.

The question of the regulation of the production of opium and commerce in opium has eng ged the earnest attention of the American Fas Financial Lission, and several weeks the Ministry of Finance recommen

ing that the Persian Government notify the League of Nations nd the Government of the United States of the willingness of Persia to adhere to the Hague Convention, on condition that the Persian Government be iven adequate time to apply the necessary regulations. The gener.T views of Dr. Millspaugh in this regard can be found in his third quarterly report, a copy of which, it is supposed, is available to the British Government. In general, it is his view that the production and exportation of fersian opiwa should be confémed to medio mi vurposes, and to this end he s announced his intention to shape his recommendations and administrative

otions.

At the time when Persia is endeavouring to restore its economic life and place its finances on a sound foundation, say sudden or serious disturbance of an iportant industry would be likely to have serious affeats. It is believed that an embargo on the shiment of Fersian onium in British steamers would have dis.strous economic effects without compensating benefits. It is noted that British consular officers report that owing to the high prices now ruling, landowners and cultiva- tors are withdrawing large areas from wheat and other cereals, and are preparing to grow opium on an even larger scale than last year. Accord- Ing to information furnished by well-informed officials of the Administra tion of Internal Revenue, qui cultivation has increased in Isfühn, but It has decreased in other regione and in zeneral the cultivation is probably less this wear thin List war. Whe amount of shipments this year, as compared with any corresponding period of last year, ure probably higher, but this fact does not signify that there has been a corresponding increase in produstion. It Is said that the liveliness in trade in opium at the present time is the natural consequence of urgent demands from far eastern markets, high pay high prices in order to obtain stock before the restrictions of the League of Nations come into Botus effect: The reports of Jommissions established this year by the Ministry of Finance, the revision of the opium regulations and the public statement made in the third quarterl report of the dministrator General, have given clear warning to the Persian march.nts of the possibility of the enforcement in the near future of restrictions, and have impressed upon them the desirability from their standpoint of exportation rather than holding their stocks in anticipation of higher prices, as has been their practice in previous years.

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It is probable that the immediate effect of an embargo on the exportation of opium would be the bankruptcy of a number of Persian, Lerchants who have sold their opium in dvance. Serious legal complica- tions would also ensue from the non-fulfillment of contracts which have been concluded. The peusunts would also suffer heavily, because in Many Opium producin, provinces the poppy seed hug already been sown for next year.

If a large quantity of opium were denied an outlet to foreign markets, it seems obvious that the amount available for domestic consumption would be reatly increased. The price would be lowered

and/