which were subsequently used to borrow funds to finance the illicit business. The British met this situation by inserting a clause in all maritime policies which provides that no losses will be paid on narcotic shipments unless each shipment is covered by an import permit from the country to which it is consigned, or by an export permit from the country from which the goods are exported. It is required also that the route of shipment be usual and customary, that the drugs be declared such in the policy and that the policy indicate the country from which and to which the shipment is consigned. This alteration in maritime insurance policies is in harmony with the efforts of this Government to give practical effect to the principles of the Hague Opium Convention and with its action in requiring, in pursuance of the Narcotic Drugs Import and Export Act of 1922, that shipments of narcotics to and from this country be covered by import and export certificates. It is realized that such a voidance of maritime insurance for inadequately controlled narcotic shipments would cause illicit traffickers to have recourse to the insurance companies of countries in which the ban is not in force. This Government has been gratified to observe the willingness of seventy-two of the companies represented in the American Institute of Marine Underwriters voluntarily to adopt this so-called "Dangerous Drug Clause" in their contracts. It is understood that your company is one of four companies which have not yet given their assent to the inclusion of this clause, and the matter is brought to your attention in the belief that, with the above explanation of the nature and purpose of the proposed clause before you, you will not hesitate to indicate your willingness to join with the other American companies in adopting it. In view of the traditional attitude of the Government of the United States concerning the suppression of the illicit traffic in narcotic drugs, as evidenced by its participation in the conferences at Shanghai in 1909 and at the Hague in 1912, together with the steps which have been taken, by domestic legislation and by cooperation with other powers, to bring about the control of the traffic contemplated by the Hague Convention of 1912, it would be most unfortunate if the United States should appear to be less willing than other countries to adopt any measure designed to reduce, in any degree, the menace of narcotic drug addiction. I should very much appreciate receiving some indication of your attitude, which I feel confident will be favorable, in regard to this matter. A similar letter is being addressed to the other three companies which have not yet signified their acceptance of the proposal.76 I am [etc.] ROBERT E. OLDS TO The four replies received indicated no agreement as to a new clause in these insurance policies. 311.4 A 2a/2: Telegram The Minister in Switzerland (Wilson) to the Secretary of State BERNE, September 7, 1928—11 a. m. 89. Following note, dated September 5, received from Sir Eric Drummond: " 78 "I have the honor to inform you that the Council of the League of Nations at a meeting held on August 31, 1928, took note of the fact that the Geneva Opium Convention of February 19, 1925, will come into force on the 25th of this month. The Council agreed to determine at its next session, towards the end of September, the question of the procedure to be adopted with regard to the appointment of the Permanent Central Board provided for under article 19 of the Convention, and to appoint the board at its subsequent (53d) session. In conformity with the terms of article 19 of the Convention the Council decided at the same time to invite the United States of America to nominate a person to participate in the appointment of the Permanent Central Board. In accordance with the instructions of the Council I have the honor to convey this invitation to your Government. I have the honor to inform you further of the desire of the Council that the Government of the United States of America if it so wishes should take full part in the settlement of the procedure for appointing the Permanent Central Board. The Council would cordially welcome any views which the United States might wish to express on this matter, either by written communication or through a representative who should take part in the Council's discussion on the question." WILSON 511.4 A 2a/7: Telegram The Secretary of State to the Minister in Switzerland (Wilson) WASHINGTON, September 29, 1928-2 p. m. 89. Your 89, September 7, 11 a. m. You are instructed to transmit in the usual informal manner the following communication to the Secretary General of the League of Nations in acknowledgment of his communication of September 5, 1928: "The Secretary of State of the United States of America has the honor to acknowledge the receipt of the note of the Secretary General of the League of Nations dated September 5, 1928, stating that, in conformity with Article 19 of the Geneva Opium Convention of February 19, 1925, the Council of the League of Nations had decided to invite the United States of America to nominate a person to participate in the appointment of the Permanent Central Board, ‘and stating further that it was the desire of the Council that the Government of the United States of America if it so wishes should take full part in the settlement of the procedure for appointing the Permanent Central Board. The Secretary of State of the United States of America desires to express his appreciation of this invitation, but regrets that the Government of the United States does not find it possible to participate in the selection of the Permanent Central Board set up by the Geneva Convention of February 19, 1925. Although in the matter of manufactured drugs and the control of transportation the Geneva Convention may be regarded as an improvement over the Hague Convention of 1912, yet in the opinion of this Government the Geneva Convention is unsatisfactory in certain respects of sufficient importance to preclude this Government from adhering to the Convention and from participating in the selection of the Board provided for by the Convention. Among the matters which this Government regards as not adequately dealt with in the Geneva Convention are the limitation of the production of raw opium and coca leaves to the medicinal and scientific needs of the world and the control of the production and distribution of all opium and coca leaf derivatives. Furthermore, the Geneva Convention tends to destroy the unity of purpose and joint responsibility of the Powers accomplished by the Hague Convention and which this Government regards as essential to an effective control of the traffic in narcotic drugs. The American Government believes that, until there can be devised some substitute for the Hague Convention more satisfactory than the Geneva Convention, the eradication of the abuse of narcotic drugs would be more likely to be achieved by strict observance of the provisions of the Hague Convention. However, the United States recognizes that the traffic in narcotic drugs can be controlled only by international cooperation and, in continuation of its efforts toward that end, will, in addition to observing its obligations under the Hague Convention, endeavor to furnish such information as the Permanent Central Board may request.["] KELLOGG 500.C 1197/223 The Minister in Switzerland (Wilson) to the Secretary of State No. 627 BERNE, October 18, 1928. L. of N. No. 1223 SIR: Referring to my telegram No. 99, of October 18, 12 m.,79 I have the honor to transmit herewith the text of Sir Eric Drummond's note dated October 16, in which he inquired, on behalf of the Assembly of the League of Nations, whether the American Government would permit a Commission of inquiry into the use of opium prepared for smoking to visit the Philippine Islands and inform itself of the experience of the system of prohibition in operation there. [Enclosure] The Secretary General of the League of Nations (Drummond) to the American Minister in Switzerland (Wilson) 12/7768/6245 GENEVA, October 16, 1928. SIR: I have the honour to inform you that the Ninth Assembly of the League of Nations, at a meeting held on September 24th, 1928, passed the following resolution: "That the Assembly recommend the Council to appoint a Commission of three persons to enquire into and report upon the situation in the Far-Eastern territories of the Governments which agree to such an enquiry as regards the use of opium prepared for smoking; the measures taken by the Governments concerned to give effect to the obligations undertaken in Chapter II of the Hague Opium Convention of 1912 and in the Geneva Opium Agreement of February 1925; the nature and extent of the illicit traffic in opium in the Far East and the difficulties which it causes to the fulfilment of those obligations; and to suggest what action should in the circumstances be taken by the Governments concerned and by the League of Nations. "That the Assembly also expresses the hope that the Government of the United States will permit the Commission to visit the Philippines and inform itself of the experience of the system of prohibition in operation there." In accordance with the resolution of the Assembly, I have the honour to bring to the attention of your Government the hope expressed by the Assembly that your Government will permit the Commission to visit the Philippines and inform itself of the experience of the system of prohibition in operation there. In taking this action, I venture to place before you, for the information of your Government, certain facts which are set out in the Report of the Fifth Committee to the Assembly (A.82.1928.XI) and which explain the origin and purpose of the proposed Commission: The proposal originated in a memorandum on the control of opiumsmoking in the Far East communicated by the British Government in a letter, dated August 1st, 1928, to the Secretary-General for transmission to the Council of the League. This proposal was examined by the Council at its meeting on August 31st, and referred to the Assembly for its consideration. As the report of the Fifth Committee to the Assembly indicates, the proposal had arisen out of the difficulties with which the British Government finds itself confronted in the attempt to carry out the undertaking into which it has entered in the Hague Convention "to take measures for the gradual and effective suppression of the use of prepared opium with due regard to the varying circumstances of each country concerned". The British memorandum explains in detail the nature of these difficulties which arise from the existence of a large illicit traffic in opium in the Far East, and hamper or even nullify the efforts of the Governments concerned to control and restrict the con sumption. These difficulties existed already in 1924-25, when the First Geneva Conference was held. Since that Conference they have not diminished, but have actually increased. The memorandum refers specially to the difficulties experienced in Hong-Kong, where the Government of the Colony estimates the consumption of illicit opium to be many times that of the Government monopoly opium. But the difficulties are considerable also in Malaya, and it would appear from the proceedings of the Opium Advisory Committee of the League that other Governments have experienced similar difficulties. The British Government states further that it has proceeded with the measures agreed upon by the Conference of 1924-25, but the present situation appears to it to be such as to call for a fresh examination and review on the spot, especially in view of the fact that under the terms of the Agreement of the First Geneva Conference a further Conference is due to be held not later than next year. The memorandum suggests that it is most desirable that an unbiassed statement of the actual position made by a completely independent Commission appointed by the League, to which is entrusted by the Covenant the supervision of the traffic, should be laid before the world. Such a Commission might further be able, as a result of its enquiries, to make valuable suggestions as to the measures to be adopted in the present circumstances. The enquiry would thus provide the material on which the next Conference would be able to base its work. I should be grateful if the Government of the United States found it possible to inform me of its reply to the request set out in this letter not later than December 10th, on which date the Council will meet for its 53rd session, and will take a final decision as to the sending of the Commission and its composition. As regards the latter point, it is understood that the three members of the Commission will be chosen from nations which are not directly concerned in the problems to be investigated. I have the honour to send you, for the information of your Government, the relevant documents dealing with this matter.80 These are: 1) The letter and memorandum respecting the control of opiumsmoking in the Far East, with appendix, communicated by the British Government, together with an extract from the Minutes of the Council, August 31st, 1928. (A.40.1928.XI.) 2) Provisional minutes of the Fifth Committee of the Ninth Ordinary Session of the Assembly (containing the discussions on the proposed Enquiry). (A.V./P.V.7, 8, 9, 11.) 3) Report of the Fifth Committee to the Assembly on the proposal by the Government of Great Britain for a Commission of Enquiry into the control of opium-smoking in the Far East. (A.82.1928.XI.) 4) Verbatim Record, Ninth Ordinary Session of the Assembly, September 24th, 1928. (See Pages 16-19). I have [etc.] ERIC DRUMMOND 80 Enclosures not printed. |