'Volume II. MEMORANDA REGARDING OTHER EXTERNAL AFFAIRS. 1905.' [‎96r] (196/228)

10
Yunnan aa ^ e0US P 61 ' 111 ' 1 transit of
lri bond across Burma via
ArS 11 !! 0 x, The P ro P os al contravened
T. flX rl 1 l. the ® urraa 'China Frontier and
] SQJ ® onve “t 1 on ratified on the 23rd August
forbtdden of opium was
in W i v M Lltto11 brought to notice that
u West Yunnan opium is practically the only
export product which can be given iu exchange
that a S rea t part of this
opium finds its market in Canton, Shanghai,
and on the east coast of China. But for
the Burma-China Treaty, its natural route
to those markets would be across Burma and
then via Rangoon and Singapore, and, in Mr.
latton s opinion, so long as the existing pro
hibition remains in force, the Burma-Yunnan
trade will fail to attain its proper development
He pointed out that, out of a total of 1,300,000
taels of trade at Ten^yueh iu the first year
after the establishment of the Custom House,
only 200,000 represented exports, the balance
having been liquidated iu appreciated rupees Indian silver coin also widely used in the Persian Gulf.
instead of by exported opium. The result
was that the Burma-Yunnan trade had only
attained one-fifth of the dimensions of the
Toughing-Yunnan trade. The Burma Govern
ment were consulted on the subject by the
Government of India, and they referred to
two important arguments which had been
advanced against the proposed scheme,
namely, (1) that the opium might he tampered
with while in transit through Burma in bond ;
and (2) that the production of opium on the
frontier, and consequently its illicit importation
into Burma, might be stimulated. The Lieu
tenant-Governor was of opinion that, if the
Chinese Government were willing to further the
proposal, there should be no serious difficulty in
devising arrangements which would prevent
any tampering with the opium while in transit
to or through Burma. As regards the second
objection, the Lieutenant-Governor considered
that the total area of poppy cultivation in
Yunnan was limited by natural causes and was
not likely to increase. On the whole, Sir Hugh
Barnes’s conclusion was that, if proper pre
cautions were taken, the stimulus to trade
which might be anticipated in the event of
Yunnan opium being permitted to pass through
Burma in bond considerably outweighed any
objections which might he urged to the proposed
scheme.
On the 5th January 1905, the Government
of India addressed the Secretary of State on
the whole subject. They said, in the first place,
that, while they were disposed to attach great
weight to the contention that the change would
strengthen the British position politically on the
Burmese frontier, they were doubtful whether
the disadvantages involved in the accept
ance of the scheme had been fully appreciated
and whether the opinion held by the local