March 15, 1909.1
THE RESTRICTION OF OPIUM IN HONGKONG AND IN CHINA.
MEMORANDUM BY H. E. SIR FREDERICK LUGARD.
H. E. the Governor laid before the Legis lative Council on Thursday the following memorandum.
THE CHARGE AGAINST HONGKONG.
On May 6th 1908, Mr. W. Johnson moved a resolution in the House of Commons (seconded by Mr. T. Taylor) approving the action of His ajesty's Government in progressively de- creasing the quantity of opium exported from India to China, and urging the abolition of licensed Opium Dens in the Far Eastern Crown Colonies. Both mover and seconder informed the House that in Hongkong "nothing had been attempted-nothing done." These state- ments passed unchallenged, and have conveyed to the rest of the Empire an pression of the facts regarding this Colony, which has caused no little soreness in a very loyal portion of His Majesty's oversea domin- ions. The Under Secretary in his reply said that His Majesty's Government recognised that in dealing with the opium question in Hongkong it was essential that we should act up to the standards set by China and in a later debate on July 28th he added that it had not been possible to get a reasoned opinion from Hongkong.
erroneous im-
-I will endeavour in the following observations to remove the misunderstanding created by the remarks of Messrs. Johnson and Taylor, and at the same time to present a reasoned opinion as to the measures which may usefully and with justice be taken in order to give affect to the high object which His Majesty's Government have in view, viz., to restrict the opium habit in this olony and to assist the Chinese Govern- ment in effecting a like restriction in China.
I write as one who has comparatively recent- ly come to the Far East with no preconceived ideas and prejudices on the subject, but who has studied it closely for over a year. I claim moreover to have given practical proof in the past of a keen interest in matters affecting the welfare of Native Races,-e.g., the suppression of the Liquor Traffic, Slavery, etc., in Africa.
ATTITUDE OF THE EASTERN COLONIES. The Eastern Colonies, as a part of the British Empire, are animated by the same ideals as the United Kingdom and have a not less high standard of morality. If then the Rulers of the Empire at its centre, and the Home Par- liament, with a full and accurate knowledge of whole circumstances, arrive at the conclusion, that restriction in the matter of opium should be inaugurated in India and in the Eastern Crown Colonies, we may assume with confidence that the decision would meet with a loyal response, in spite of the fact (which Colonel Seely frankly pointed out) that it is their revenue and their tra e,- and not that of the United Kingdom,-which are affected.
CHINA OVERLAND TRADE REPORT.
The Colonies concerned are, however, natural- ly anxious that the Imperial decision shall be based upon an accurate presentment of the facts, and it is clear from a perusal of the speeches in the Legislative Councils and Press, that the communities concerned labour under an impres- sion that public opinion in England has to some extent been misinformed as to the facts, and that in consequence the methods proposed are not in all cases such as are best adapted to the end in view, or consonant with a British sense of Justice. Willing co-operation can only be based upon a mutual conviction that the course of action adopted is one that has every prospect of being effective, and that the sacrifices made will not be futile.
217
in 1906 and £4,656,218 in 1907. The profits into China, it must be remembered that there made are similar to those secured in any are other non-British ports which are quite other form of trade, and add to the general as favourably situated for the operations of commerce business of the Port, by increase-smugglers as Hongkong is.
ing freights,, insurance (fire and marine), bank- The price of prepared opium in Hongkong ing, warehousing, and handling. The extinction being double that in China there is obviously of the trade therefore would not merely be a loss little inducement to smuggle the prepared drug, to the merchants engaged in it but also to the while the small number of chests drawn by the general business and prosperity of the Colony. Farmer (about half the number authorised) No protest, however, has yet been heard from shews that it is improbable that raw opium is those chiefly interested, who have accepted illicitly exported. There is moreover indepen- loyally the policy of the Home and Indian dent evidence to shew that any systematic Governments, but they claim-looking to the smuggling is now practically extinct, though magnitude of the trade, and to the fact that it no doubt small quantities may be occasionally has existed for over 100 years-that ten years exported illicitly by casual individuals. is the mininum time in which new interests can be created to replace those sacrificed, and any diminution of this period would impose too heavy a burden upon them. nection I venture to suggest that China should be required to reciprocate by abandoning her exports to Siam and Indo-China-both of which countries, like herself, have declared their desire to restrict the consumption of opium.
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EFFECT ON HONGKONG OF PLEDGES GIVEN.
I will deal first with the statement that in Hongkong nothing has been done. England has already taken one very definite step. She has promised to reduce the export of opium from India to China by one-tenth each year for the next three years, and to continue that reduction annually if at the end of three years it is shown the China has proportionately reduced the production and the consumption of the drug. This pledge seriously affects the interests of Hongkong which has long been the mart for the trade in raw opium in the Far East. The saunal value of this trade is given as £5,312,645
In this
Con-
INDEPENDENT ACTION BY HONGKONG. A second step has been taken in which Hong- kong alone
was concerned. In 1907 His Majesty's Government proposed to prohibit the exportation of prepared opium from Hongkong. Opium, under the Monopoly system in this Colony, can only be "prepared" for sale by the Farmer. It was perfectly legitimate for him to export to China under proper permit and declaration, though such export formed no part of his Monopoly rights. To prohibit it would be, however, a curtailment of the privileges under which his contract was signed, and might have involved a moral claim for compensation, but as hina undertook to reciprocate and to check the smuggling of prepared opium into Hongkong the Farmer willingly agreed and the trade was abolished. The Chinese Government] expressed itself as very grateful for this action by the Hongkong Government.
Further assistance has been rendered to China by Hongkong through the consistent efforts of the Colony to prevent the smuggling of opium to the Mainland, though such smuggling was of course in no way injurious to the Colony itself, and if unchecked would add to the value of the Farm. No doubt the decrease in the rental value of the Farm in recent years is in part due | to the cessation of smuggling.
(a.) The Police have made no seizures to speak of for eight years.
(b.) It has not come to my knowledge that the Chinese Customs, in spite of the large rewards they offer to informers, have made any important seizure.
(c.) The armed bands who in former days were met with from time to time and often offered resistance, appear to have been quite broken up.
(d.) The willingness of the Farmer to co- operate in preventing the smuggling of pre- pared opium to China, if the latter would reciprocate, goes to show that he does not smuggle.
(e.) Finally there is conclusive evidence furnished by Mr. Clementi's recent examina- tion of the Farmer's books to exonerate him from any such charge.
The efforts of the Hongkong Government in recent years (and before the present agitation began) have therefore been consistently directed towards the abolition of illicit trade in either raw or prepared opium to China and there is evidence to show that its efforts have been attended with a large measure of success. This is a benefit of the very first importance to China and has only been secured by constant efforts and some pecuniary loss to the Colony. Recently China has pledged herself to recipro- cate by checking the illicit importation of prepared opium from China into Hongkong, but her inability to translate her undoubtedly genuine desire into effective action is shown by the fact that for the six months following that in which the agreement was made (viz., August 1907 to January 1908) the average number of seizures of prepared opium illicitly imported into Hongkong has exceeded one per diem, The smuggling takes place from various_ports, Canton, Amoy, Swatow, Hoihow, etc. I have reason to know that the Viceroy at Canton is sincerely anxious to put a stop to this practice, and the Imperial Maritime Customs have done their utmost, but the effort to suppress smug. gling is to attempt the impossible, so long as the price of opium in China is only half the price in Hongkong.
EXPORT FROM CHINA,
It is generally believed that some ten years ago there was a very considerable smuggling trade to China, for judging by the figures of recent years it would seem probable that the Farmer at that time drew more opium from Bond than he required for his legitimate business. It is surmised that he sold the balance to smugglers, but the risks both to them and to himself were great for the conditions of the Farm were designed to prevent smuggling and as experience was gained new precautions were from time to time taken. No one can lawfully I have already observed that since China has possess prepared opium in sufficient quantities appealed to the Indian Government to make to smuggle unless procured from the Farmer heavy pecuniary sacrifices in order to restrict for no one else may prepare opium. No one the import of opium, it is reasonable to expect may have "loose opium". (viz., anything less that she herself should abandon the authorised than an unbroken chest), except the Farmer, export of Chinese grown opium. The official and every chest imported must be declared and returns show that this export had continually a permit to store obtained. Quantities in the increased up to 1907 when it fell to 84,737 lbs. authorised stores are checked from time to time. The average for 5 years (including 1907) is A new permit must be got for removal from 348,811 lbs. The re-export of foreign opium is store for export, and for removal from one place slightly decreasing. In 1907 it stood at 48,400 to another, or for transhipment within the lbs., the average for 5 years being 70,947 lbs. Colony The Harbour Master furnishes the The total average export for the last 5 years Master of every Ship carrying opium for export through the Customs (.., apart from smuggl with a memorandum of particulars concerning ing) is therefore 419,758 lbs. the bulk of which such opium, and a copy of the memo. is sent to goes to French Indo-China. There is also the Imperial Maritime Customs. (Ordinance 9a considerable illicit export of raw opium
of 1887.)
from China, to the Straits, Saigon, Bangkok, The Farmer used formerly to have two America, and other places, which as I have said establishments at the East and West of the Town can only be checked by exhancing the price of and it was open to boats in Harbour, if found opium in China, till it equals the price in the with loose opium on board, to declare that they countries to which smuggling takes place. were carrying it from one to the other, and had no intention of smuggling. In order to eliminate the possibility of illicit trade due to this cause, the Farmer since 1900 has only been allowed to maintain one establishment.
If prepared opium bearing the Hougkong Farmer's "chop" is now found in China the
I have I trust shown that, so far from having done nothing to assist China, Hongkong isper haps the only place (until the recent action of India) which has consistently and effectively
afforded assistance.
THE PROBLEM IN CHINA.
The sincerity and honesty of purpose of the chop" is probably a forgery in order to obtain Central Government and of many of the sale as foreign opium for what is really native Viceroys of the eighteen great provinces of opium. It is hardly likely that the Farmer China is admitted, but the difficulties, would put his "chop" on smuggled opium. If Financial, Industrial, and Executive—which it is a fact that opium is still smuggled confront the Provincial Administrations are
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