OPIUM.
340. Owing to the continuous troubles and disturbances during a large part of the year, fewer reports on the cultivation of poppy have been received. It has, how- ever, been reported from the following regions: Szechuan, Shansi, the Tengyueh district of Yunnan, South Fukien, where His Majesty's consul at Amoy estimates the year's crop at a value of 20 million dollars, and the Jehol district of Chihli. In practically all these districts cultivation has been directly encouraged, if not enforced, by the local military authorities, usually under the disguise of a
** land tax, penalising farmers who do not plant poppy.
341. His Majesty's consul at Tengyueh estimates that from 70 to 80 per cent. of the men and 20 per cent, of the women are opium addicts.
**
**
342. In response to the usual protests which have from time to time been lodged by the Legation, the Wai-chiao Pu have invariably issued "instructions for the strict suppresion of poppy cultivation; but in view of the Central Government's absolute impotence to control the military even in so adjacent a district as Jehol, such instructions are of necessity but a poor expedient to
save face." 343. It was rumoured in the spring that the then Central Government were contemplating the establishment of an opium monopoly, ostensibly to control the traffic, but doubtless with a view to relieving their financial straits rather than from any better motive.
It may be remembered that some years ago Sir Francis Aglen expressed the view that a Government monopoly was the only means of curbing the traffic. Although several members of the Government were in favour of the scheme, it was eventually shelved, probably owing to the fear of foreign opposition. It is possible, however, that the settlement of the gold franc question may, by easing the financial situation, have contributed to this decision.
344. A case which occasioned much interest arose in February when a certain N. E. B. Ezra prosecuted some Chinese for the theft of some opium alleged to belong to him. In the course of investigations a large organisation for disposing of smuggled opium was discovered, and the Chinese concerned were prosecuted and duly con- victed by the Shanghai Municipal Police for trafficking in opium. Ezra's case was delayed for some months pending a decision regarding the Spanish consul-general's claim to jurisdiction over him in view of his being registered in the Spanish consulate, although Ezra is a Sephardic Jew of Bagdad origin, born in India. The Chinese Government refused to recognise the Spanish claim, and the case was eventually heard and dismissed in spite of Ezra's efforts to withdraw from an action which, he felt, was certain to fail unless tried by the Spanish Assessor to the Mixed Court. The case affords an admirable instance of the harm which can be done to China by unscrupulous persons of uncertain nationality taking cover behind exterri- torial rights.
345. An immense amount of smuggling of drugs into China is known to exist, but definite and reliable information on the subject is difficult to obtain. The following is a brief summary of the more interesting instances which have come to Flight in the year :—
"
346. The Ezra case revealed the existence of an important syndicate in Shanghai trafficking in narcotics in the Far East with ramifications both in Europe and the Near East. The chief parties concerned are the Kuan Ho Company (Chinese), the firm of H. M. H. Nemazee and various Japanese. The syndicate Imports morphia and heroin, chiefly from Germany and Switzerland, and is also said to own the steamship "Honan (late "Ad Infinitum" and "Promethean"} ffor importing opium into China from Bushire. The steamship "Tai Tak," now under the Portuguese flag, and also engaged in the opium traffic, was formerly owned by Nemazee, being then known as steamship Dashistan." Another member of the same syndicate, a citizen of the United States named Tracy Woodward, formerly a Shanghai resident, but latterly organising the export of opium from Bushire, was fined by the United States authorities in Bushire and obliged to enter into a bond to refrain from the drug traffic in the future. The Japanese firm, Suzuki and Co., also appear to engage in opium-smuggling. According to information received, a shipment was despatched from Bushire in the Yoroppa Maru," consigned to one Nakasawa, who was said to hold a licence to import the opium into Vladivostok, but is believed to be merely a fence for Suzuki It was stated that the opium would probably be "transhipped outside Shanghai," and there is reason to believe that it was never intended that the cargo should reach Vladivostok. The Hong Kong and Shanghai Bank, through whom the deal was to be financed, refused to associate themselves with the matter.
347. The Chinese Government have themselves enacted regulations for the control of narcotics, and also for the registration of drug sellers. These regulations have, however, not been found suitable for application to foreigners and have not been agreed to by all the foreign Powers. The suggestion that the existing King's egulations should be amended to make the Chinese regulations binding on British abjects has not been adopted. It was considered unfair to penalise the British erchant, who is already under considerable disability as regards the arms traffic, and whose hands are probably freer from narcotic taint than are those of many of his foreign competitors.
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