§ Sir GEORGE POLLARD
asked the Under Secretary of State for India whether he had any official information showing that, since the conclusion of the agreement between the Indian and Chinese Governments to restrict the importation of opium into China, the revenue of the Indian Government from that opium traffic has shown an increase; if so, to what causes such an increase is due; and can he supply the necessary facts and figures on the subject?
§ The UNDER SECRETARY Of STATE for INDIA (Mr. Montagu)
The net opium revenue of the Indian Government before and after the agreement with China has been as follows: In 1906–7, the year before the agreement took effect, it was £3,747,236, In 1907–8, 1908–9, 1909–10, it was respectively £3,575,545, £4,648,700, £4,418,200. For the current year the Budget Estimate was for a revenue of £3,553,700, but this estimate will probably be greatly exceeded. The explanation of such increases in revenue as have been or may be realised is to be found in the inflation of prices and reduction of expenditure which normally accompany a restriction of supply.