§ Sir J. D. REESasked what reasons the Government has for confidence that with the restoration of order in China the Chinese Government will be able speedily to secure compliance in the provinces with the reciprocal stipulations of the opium agreement; whether such compromise is founded on any and, if so, on what official or other Reports; whether the restoration of order in the provinces is yet in sight; and whether the loss of revenue and probable need for additional taxation are already threatening the Indian taxpayer?
§ Mr. MONTAGUThe restoration of order in China implies that the central Government would then be in a position to enforce its will in the provinces and secure the observance of international engagements. To uphold such engagements is the declared policy of the new Government. The Secretary of State cannot forecast the course of events in China, and can only deal with the existing situation. The Indian Government continues to realise for its opium prices considerably in excess of its Estimates, and has provided for the expenditure of the present year without additional taxation.
§ Sir J. D. REESIs it a fact that though the Indian Government Revenue is maintained owing to the high price obtained for its opium, we cannot count upon that, and under this agreement the whole revenue will disappear at a time when the Indian finance will also be called upon to bear the very heavy burdens to which the hon. Gentleman alluded the day before yesterday?
§ Mr. MONTAGUIt is true that if the opium agreement is carried out the revenue from opium will largely disappear.
§ Sir J. D. REESIs it fair to the Indian peoples, while affairs in China are at a standstill, to have this agreement running against the taxpayers in India?
§ Mr. MONTAGUThere is a temporary disturbance in China, but there is no necessity for a moment to imagine that the agreement extending over a large number of years will not go on.