ANNEXE

AIl uncertificated Indian opium in bond at the Treaty ports and Hong-kong on the date of signature which is intended for the Chinese market shall be labelled, and on payment of the present duty shall be ertitled to the rights and privileges of certificated opium; but opium now in bond at Hong-kong must be exported to a Chinese port within seven days of the date of signature. All other uncertificated Indian opium shall for two months from the date of signature be imported through Shanghai and Canton only. Afterwards all Treaty ports shall be closed to uncertificated opium, provided China obtains the consent of the other Powers. In addition to the annual reduction of 5,100 chests, the British Government agrees to reduce the imports of Indian opium still further in each of the years 1919, 1913, and 1914, by an amount equal to one-third of the total amount of uncertificated Indian opium in bond at the Chinese Treaty ports and Hong-kong on the date of signature plus one-third the amount of uncertificated Indian opium landed during the ensuing two

months at Shanghai and Canton.

Mr. Montagu, the Under-Secretary for India, was asked on Tuesday in the House of Commons to state the result of the negotiations with China respecting the termination of the Indo-Chinese opium traffic, and he replied that the Treaty with China was signed on Monday, and that the summary of the Treaty which appeared in The Times (and which is reproduced above) could be taken as correct.

He said that during the next seven years the revenue of £ 3,000,000 received by India from the export of opium to China might disappear, but that it would be premature to consider now the question of a contribution from the Imperial Exchequer.