893.114 Narcotics/1524: Telegram

The Ambassador in China (Johnson) to the Secretary of State

166. Embassy’s 69, Feb. 18, 2 p.m. It is reported in the Chinese press that 2 opium wholesalers in Peiping commenced business on March 25, and that 12 opium retail shops have been “ordered” to begin trade as of April 1. It is also reported that a certain opium wholesaler in Tientsin has recently put in an order for a large consignment.

It is understood that two factors have operated to delay the institution of the proposed monopoly control in North China: (1) The power exercised by existing illegitimate dealers who hold large opium stocks, and (2) the doubt in the minds of potential operators as to whether the business will, under the present circumstances, so flourish as to warrant the payment of the comparatively large stamp fees. The program is, nevertheless, evidently going through.

By mail to Tokyo.

Johnson