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The Opium Question in the Federated Shan States, 1931–36: British Policy Discussions and Scandal

Published online by Cambridge University Press:  07 April 2011

Robert B. Maule
Affiliation:
University of Toronto

Extract

The earliest known evidence for the existence of the opium poppy has been traced to the Neolithic and Early Bronze Ages in west central Europe. Arab traders introduced opium into Asia, and in the eighth century A.D., it had been used in China. By the nineteenth century, China provided the most lucrative market for traders, primarily British and American, who brought opium to China from India and the Ottoman Empire. Opium use also proved to be popular among the overseas Chinese communities in Siam, Malaya, and the Dutch East Indies. The Chinese demand for opium, the lucrative profits to be gained from the manufacture, transfer, and sale of opium, and official connivance at edicts to prohibit its import into China, served to create a flourishing trade.

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Articles
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Copyright © The National University of Singapore 1992

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References

1 Merlin, Mark D., On the Trail of the Ancient Opium Poppy (Mississauga: Associated University Presses, 1983), p. 282Google Scholar.

2 Fitch's account appears to be based upon that of an earlier traveller, the Venetian Caesar Fredericke, who came to Pegu in 1567. Hall, D.G.E., Early English Intercourse with Burma, 1587–1743 (London: Frank Cass and Company Ltd., 1968, 1st ed. 1928), p. 22Google Scholar.

3 Owen, David E., British Opium Policy in China and India (Hampden: Shoe String Press, 1968), p. 128, fGoogle Scholar. 49.

4 Harvey, G.E., History of Burma. From the Earliest Times to 10 March 1824. The Beginning of the English Conquest (London: Frank Cass and Company Ltd., 1967), p. 315Google Scholar. In addition see, Furnivall, John S., The Fashioning of Leviathian. The Beginnings of British Rule in Burma. An Occasional Paper of the Department of Anthropology, Research School of Pacific Studies (Canberra: The Australian National University, 1991, 1st pub. 1939), p. 112Google Scholar.

5 Scott, J. George, Hardiman, J.P., Gazetteer of Upper Burma and the Shan States (GUBSS) 1:1 (Rangoon: Superintendent, Government Printing, Burma, 1900), p. 276Google Scholar. GUBSS 1:2, pp. 358–61. 1891 Daly Expedition, 2 Feb.-21 Apr., cited in, Harvey, Wa Precis. A precis made in the Burma Secretariat of all traceable records relating to the Wa States (Rangoon: Office of the Superintendent, Government Printing and Stationery, Burma, 1932)Google Scholar, India Office Records (IOR): The Clague Collection, MSS Eur. E. 252/26.

6 Report on the Administration of the Shan and Karenni States for the Year 1916–17 (RASKS) (Rangoon: Office of the Superintendent, Government Printing, Burma, 1917)Google Scholar, IOR: V/10/533.

7 Secretary, Dept. of Agriculture, Excise and Forests, Burma, No. 333-X-25, File 4660, 13 Jan. 1926, IOR: L/E/7/1405.

8 Ibid. In the Northern Shan States, the sale of opium was conducted through a monopoly that was auctioned annually to the highest bidder. The successful applicant would be expected to work with local police to suppress illicit opium traffic and to maintain his own staff of opium police for that purpose. 1935 Report, Northern Shan States. League of Nations. Traffice in Opium and other Dangerous Drugs. Annual Reports by Governments for 1935 Concerning Prepared Opium. Burma and the Northern and Southern Shan States. Official No. C.519 (Geneva, 7 Dec. 1936)Google Scholar, IOR: M/3/329. Also see, The Shan States Manual (corrected up to the 31st January 1932) (Rangoon: Government Printing and Stationery, Burma, 1933), pp. 174–82Google Scholar.

9 Kokang was a sub-state of North Hsenwi in which the populace was almost entirely Chinese. Approximately 12,000 viss of opium were produced annually in Kokang of which 8,000 viss were surplus available for illicit sale. A viss is a Burmese unit of weight equivalent to 3.64 lbs. Chief Secretary's Office, Home and Political Department, Burma to Foreign Secretary, India, 23 Dec. 1936, IOR: M/1/181. Much of the opium sold to consumers in the Federation originated in Kokang. Minute by H.H. Craw, 23 March 1943, Public Records Office (PRO): FO 643/51/4J1.

10 Secretary, Department of Agriculture, Excise and Forests, 13 Jan. 1936.

11 Crosthwaite, Sir Charles, The Pacification of Burma (London: Frank Cass and Company Ltd., 1968, 1st ed., 1912), p. 41Google Scholar.

12 A similar sentiment was shared at a later date by Colonel Sharman, the Canadian delegate to a meeting with the Commissioner of Narcotics for the League of Nations at Washington, D.C. Sharman pointed out that the Chinese crews of Canadian Pacific, Blue Funnel and Empress Lines travelling to Vancouver and Halifax all carried opium, and it caused the Canadian Government great expense and time to confiscate the opium once the ships had landed. Minutes of a Meeting in the Office of the Commissioner of Narcotics, 17 Mar. 1943, IOR: M/3/1324.

13 Crosthwaite, The Pacification of Burma, pp. 39–40.

14 Newton, Lord, Lord Lansdowne. A Biography (London: MacMillan and Co. Ltd., 1929), p. 110Google Scholar; Dixon, G. Graham, The Truth About Indian Opium (London: HMSO, 1923), pp. 2Google Scholar, 15, IOR: M/3/196. Owen, British Opium Policy, pp. 311–28, 333–35. One writer noted that beginning in 1910, opium use began to be seen as a social menace. Prior to that date, opium use had been, “largely confined to therapeutically addicted, middle-class, middle-aged persons”. Parssinen, Terry M., Secret Passions, Secret Remedies. Narcotic Drugs in British Society 1820–1930 (Philadelphia: Institute for the Study of Human Issues, 1983), p. 104Google Scholar.

15 Dixon, The Truth About Indian Opium, p. 15. Most of Great Britain's supply of opium came from the Ottoman Empire rather than from India. According to Parssinen, opium imports were around 280,000 lbs. in the 1860s. Parssinen, Secret Passions, Secret Remedies, pp. 10, 14.

16 McCoy, Alfred W., The Politics of Heroin in Southeast Asia (New York: Harper & Row, 1972), p. 69Google Scholar. One of the reasons that it was so unprofitable in Burma is that the government price offered to consumers was undercut by illicit transactions. Corruption in the Excise Department and the large quantities of opium available through illicit channels further cut into government revenue. Minute by Craw, 23 March 1943.

17 This paragraph is based upon information available in the following sources: Dixon, The Truth About Indian Opium, pp. 22–24; Owen, British Opium Policy, pp. 333–52; F. Lewisohn, Chief Secretary, Burma, to the Foreign Secretary, India, 11 Jan. 1921, IOR: L/P&J/6/1751; A.H. Lloyd, Joint Secretary, Finance Department, Central Revenues, India, to H.G. Wilkie, Secretary, Burma, C. No. 109-E.O./32, 30 Mar. 1932, IOR: M/3/196.

18 Wilkie to Lloyd, No. 67×32, 17 March 1932; Wilkie to Lloyd, 3 Sept. 1932, IOR: M/3/196. The Government of Burma had adopted a policy in 1931 that could eventually lead to the total suppression of the opium trade in Burma proper. Report of the Committee appointed to consider certain recommendations in the Report of the League of Nations Commission of Enquiry into Opium Smoking in the Far East, 12 Oct. 1931, IOR: M/3/196.

19 In addition, Wilkie indicated that the Government of Burma wanted to build a factory to process opium similar to the one that had been constructed at Ghazipur in India. Wilkie to Lloyd, 3 Sept. 1932. The punishment handed out to convicted smugglers hardly seemed sufficient to act as a deterrent. For example, six men who were caught carrying 246 kgs. of opium in Thayetmyo District in 1935 only received a sentence of one year in jail and a fine of Rs. 500 each. Report by the Government of India for the Calendar Year 1935 on the Traffic in Opium and Other Dangerous Drugs, Appendix I (New Delhi: Government of India Press, 1935), p. 4Google Scholar, IOR: M/3/196.

20 These commitments included the following: The International Opium Convention, 1912 (The Hague); The Agreement for the suppression of the manufacture of, internal trade in, and use of, prepared opium, 1925 (Geneva); The Convention relating to Dangerous Drugs International Opium Conference, 1925 (Geneva); The Convention for limiting the manufacture and regulating the distribution of Narcotic Drugs, and Protocol, 1931 (Geneva); The Agreement for the control of opium smoking in the Far East, 1931 (Bangkok); and The Convention for the Suppression of the Illicit Traffic in Dangerous Drugs, 1936 (Geneva). The Bangkok Agreement of 1931 did not apply in th e Shan States or Karenni.

21 By the 1920s, China was producing 6,380 ton s of opium annually. These figures were surpassed in 1934 when 18,000 and 10,000 tons of opium were obtained from Szechuan and Yunnan Provinces respectively an d transported under military protection to river ports. McCoy, Alfred W., The Politics of Heroin. CIA Complicity in the Global Drug Trade (Brooklyn: Lawrence Hill Books, 1991), pp. 96Google Scholar, 266.

22 Minute by Dixon, Economic and Overseas Department (E.&O.), 785 (1932), 2 Feb. 1932, IOR: M/3/196. One British official in Burma, Mr. Brown, argued that the Burma Government's opium policy, “was mainly regarded from a fiscal point of view”, yet he did admit that, “the slogan was maximum profit to Government along with minimum consumption”. Minute by Craw, 23 Mar. 1943.

23 Telegram. Lloyd to Sir Samuel Hoare, Secretary of State for India, 25 Feb. 1932; Dixon to Sir J. Campbell, the former representative for India on the Opium Advisory Committee of the League of Nations, 4 March 1932, IOR: M/3/196.

24 Wilkie to Lloyd, 3 Sept. 1932.

25 Wilkie to Lloyd, No. 37X32, 5 Feb. 1932, IOR: M/3/196.

26 Clague, John, Brief Review of the Working of Federation in the Shan States, 1922–1931 (Rangoon: Superintendent, Government Printing and Stationery, Burma, 1931), p. 30Google Scholar, IOR: M/3/252.

27 To illustrate, the opium trade proved to be a lucrative business for the Kokang Myosa. During World War II, he was kidnapped and confined for a period of 81 days by his supposed allies, the Chinese Army. To secure the release of himself and his family cost the Myosa approximately Rs. 20 lakhs. L.R. Ogden, C.A.S.(B), Report on the Kokang Mutiny. Top Secret (Simla: Manager, Government of India Press, 1944), pp. 7Google Scholar, 9–10. After the British transferred power to an independent Burma, Olive Yang, a daughter of the Myosa, emerged as a colourful warlord in the opium and gold trade: “... while still in her twenties, this decidedly masculine woman... came to command a private army of nearly one thousand men”. In alliance with the K.M.T. an d Burma Army commanders in the northern Shan State, her army carried opium and gold from Kunlong in the Wa territory to the Thai border and along the Burma Road to Hsenwi. Olive used the profits gained from her ventures to maintain her army and to carry on, “affairs and marriages to popular songstresses, starlets”, in particular with the famous Burmese actress, Wa Wa Win Shwe. However, her empire crumbled in the 1960s. She was arrested and now manages a restaurant in Rangoon. Lintner, Bertil, Land of Jade. A Journey through Insurgent Burma (Edinburgh: Kiscadale Publications, 1990), pp. 224–25Google Scholar; Yawnghwe, Chao Tzang, The Shan of Burma. Memoirs of a Shan Exile (Singapore: Institute of Southeast Asian Studies, 1987), p. 245Google Scholar.

28 The smuggling operations were in the hands of Chinese who, in most regions, received the co-operation of government officials.

29 Marshall, J.B., Report on the Bangkok Opium Conference (Rangoon: Superintendent, Government Printing and Stationery, Burma, 1932), p. 2Google Scholar; Malcolm Delevingne, Report on the proceedings at the International Conference on the Suppression of Opium Smoking at Bangkok, Nov. 1931 (23 Dec. 1931), IOR: M/3/196. But, the French were doing little to control opium production and smuggling in Indo-China since they were dependent upon opium as an important source of revenue. To illustrate, by 1938, 15 per cent of the tax revenue in French Indo-China came from opium. During World War II, opium production in IndoChina rose from 7.5 tons in 1940 to 60.6 tons in 1944. McCoy, The Politics of Heroin, pp. 112, 115.

30 Delevingne, Report on the proceedings.

31 Marshall, Report on the Bangkok Opium Conference, pp. 8–9.

32 Lloyd to Wilkie, C. No. 109-E.O./32, 24 Feb. 1932; Telegram. Lloyd to Hoare, 25 Feb. 1932, 1OR: M/3/196.

33 Minute by Dixon, 7 Apr. 1932, IOR: M/3/196.

34 Minute by Dixon, 23 Mar. 1932, IOR: M/3/196.

35 Campbell to Dixon, 8 Mar. 1932, IOR: M/3/196.

36 Dixon to Campbell, 4 Mar. 1932, IOR: M/3/196.

37 Furthermore, Hoare doubted that the Shan Chiefs would acquiesce in any attempt to tighten administrative control at a time when they were critical of British interference in their States. Hoare to Lord Willingdon, Governor General of India in Council, Public Despatch No. 31, 5 May 1932, IOR: M/3/196.

38 Sir Charles Innes, Governor of Burma to Sir Findlater Stewart, Under Secretary of State for India, Political and Judicial Department (P.&J.) 76(B), 15 June 1932, IOR: M/3/196.

39 Stewart to Innes, 26 July 1932, IOR: M/3/196.

40 Wilkie to Lloyd, 3 Sept. 1932.

41 Ibid. The Wa States were part of the Shan States as defined by the British, but they were not included in the Federated Shan States. R. McDowell, Reforms Secretary's Office to D.T. Monteath, India Office, No. 7D Reforms 32 Pt. V, P.&J.(B)702, 23 June 1934, IOR: M/l/94. Clague estimated that about 36,000 viss of opium were produced in the Wa States every year of which 24,000 viss were available for illicit trade. Clague, Office of the Commissioner, Federated Shan States to W. Booth-Gravely, Chief Secretary, Home and Political Department, Burma, 19 Sept. 1932, IOR: The Clague Collection. MSS Eur. E. 252/27.

42 Wilkie to Lloyd, 3 Sept. 1932; Booth-Gravely to the Secretary, Foreign and Political Department, India, Feb. 1933, IOR: The Clague Collection. MSS Eur. E. 252/28.

43 Instructions for the Wa States Expedition, 1934, IOR: The Clague Collection, MSS Eur. E. 252/27; J.C. Walton, India Office to the Under Secretary of State, Foreign Office, P.Z. 2820 (1934), 1 May 1934, PRO: FO 371 (18084); Hugh Stephenson, Governor of Burma to Hoare, 29 Sept. 1934, Sir Hugh Stephenson MSS, Box I, South Asian Library, Cambridge.

44 Ibid.

45 Minute by Morley, Private Secretary to the Parliamentary Under Secretary of State, P.&J.(B)133, 2 Feb. 1933, IOR: M/3/196.

46 Telegram. Booth-Gravely to the Foreign and Political Department, India, 2 Aug. 1934, IOR: M/3/301.

47 Wilkie to Lloyd, 3 Sept. 1932.

48 Ibid.

49 Ibid.

50 Lloyd to Hoare, No. 3-E.O.(1932), 10 Nov. 1932, IOR: M/3/196.

51 Minute by Dixon, P.&J.(B)133, 26 Jan. 1933, IOR: M/3/196.

52 Minute by Morley, P.&J.(B)133, 21 Feb. 1933, IOR: M/3/196.

53 Hoare to Willingdon, Public Despatch No. 23, 16 Mar. 1933, IOR: M/3/196.

54 Siam. Annual Report, 1935. Copy No. 059, 24 Feb. 1936, IOR: M/3/22. Kengtung was not under the protection of the British Crown. Its correct status was conveyed to Bangkok, and then acknowledged by His Majesty's Minister, Sir Josiah Crosby, at the Legation. Crosby to N.B. Arnold, 10 Dec. 1938, PRO: FO 371 (22216).

55 Unless otherwise indicated, the account of the transaction and the transfer of the opium from Kengtung to Bangkok is based upon the documented report of the scandal by the Government of Burma. Craw to Finance Department, Central Revenues, India, Confidential Despatch, Political Department No. 138(B)35, Part II, 25 Apr. 1936, IOR: M/3/22.

56 Luang Sri was part Chinese. He operated a spirit farm in Phrae, northern Siam. AT. Oldham, British Consulate, Chiengmai to Crosby, 7 Feb. 1935, IOR: M/3/22.

57 Myo Seng first notified the British Legation of what was afoot on 12 Nov. 1934, Crosby to Sir John Simon, Secretary of State for Foreign Affairs, Confidential Despatch No. 28, 22 Jan. 1935; Crosby to Simon, Confidential Despatch No. 104, 26 Mar. 1935. The information supplied by Myo Seng is in Statement given by Nai Meow Seng to his lawyer at the latter's office on Thurs., 31 Jan. 1935, IOR: M/3/22.

58 A permit signed by Luang Narubesar Manit was utilized to close the police investigation and forward the opium to the Excise Department.

59 Crosby to Phya Bahol Balabayuha Sena, President of the State Council, 17 Jan. 1935, IOR: M/3/22.

60 See footnote 58.

61 The partners in the opium ramp could expect to obtain a profit of 375,000 ticals or about £35,000. Crosby to Simon, 22 Jan. 1935; Crosby to Simon, 26 Mar. 1935.

62 Craw to the Secretary, Finance Department, Central Revenues, India, 25 April 1936. The Assembly at Bangkok voted by a margin of 48 to 17 not to discuss the opium scandal. Note by James Baxter, Financial Adviser to the Government of Siam, undated, 1OR: M/3/22.

63 A.E.S. Adams, Charge d'Affaires, British Legation, Bangkok to Hoare, Confidential Despatch No. 251, 9 July 1935, IOR: M/3/22.

64 Baxter to Sena, 21 June 1935, IOR: M/3/22.

65 Bailey to Hoare, Confidential Despatch No. 211, 21 June 1935, IOR: M/3/22. Minute by John Chaplin, PRO: FO 371/19371 (171172).

66 Crosby to Hoare, Confidential Despatch No. 378, 7 Nov. 1935, IOR: M/3/22.

67 The Straits Times, 31 Oct. 1935, PRO: FO 371/19375 (171233).

68 Crosby to Hoare, 7 Nov. 1935.

69 Foreign Office Minute Paper, 20 June 1935, PRO: FO 371/19371 (171172). The main worry was that Baxter might be replaced by a Japanese adviser. Telegram, Bailey to the Foreign Office, 15 July 1935, IOR: M/3/22.

70 Siam. Annual Report for 1935, PRO: FO 371/20302 (F2341/2341/40), p. 95.

71 Ibid.

72 Prior to his service in Siam, Baxter had worked as a Financial Adviser to the Governments of Newfoundland and Egypt, IOR: M/3/571.

73 Crosby to Sena, 17 Dec. 1935; Sena to Crosby, 31 Dec 1935; Camille Notton, Consulat de France, Xieng-Mai to W.W. Coultas, British Consulate, Chiengmai, 18 May 1936; Coultas to Crosby, 18 May 1936; Crosby to Anthony Eden, Secretary of State for Foreign Affairs, 1 Dec. 1936, IOR: M/3/22.

74 Crosby to Eden, Confidential Despatch No. 385, 17 Sept. 1936, IOR: M/3/22.

75 Siamese Chronicle, 3 Dec 1936; Bangkok Times, 24 Nov. 1938, IOR: M/3/22.

76 See above, p. 21

77 Translation. Tai Mai, 21 Nov. 1936, IOR: M/3/22.

78 Crosby to Viscount Halifax, Secretary of State for Foreign Affairs, Confidential Despatch No. 241, 22 June 1938, IOR: M/3/22.

79 Minute by H.E. Davies, Secretary, E.&O. Department, Burma Office 3296/39, 12 May 1939, IOR: M/3/22.

80 Crosby to Halifax, 22 June 1938.

81 Crosby to Halifax, Confidential Despatch No. 325, 10 Aug. 1938, IOR: M/3/22. Crosby to Halifax, Confidential Despatch No. 202, 7 June 1940; Under Secretary of State for Foreign Affairs to Crosby, No. 125(R), 25 July 1940, IOR: L/E/7/1555.

82 Craw to Finance Department, Central Revenues, India, 25 Apr. 1936.

83 Telegram, Booth-Gravely to the Marquess of Zetland, Secretary of State for India, 21 May 1936, IOR: M/3/22.

84 F.S. Grose, Offg. Commissioner, Federated Shan States to Booth-Gravely, Letter No. 299/16CF, 4 July 1936, IOR: The Clague Collection, MSS Eur. E. 252/5.

85 Craw to Zetland, Political Departmen t No. 138(B)35, 10 Oct. 1935, IOR: M/3/22.

86 Dixon to Craw, 30 Mar. 1937, IOR: M/3/22.

87 Craw to Zetland, 10 Oct. 1935.

88 Clague to Stephenson, 27 Feb. 1935, The Clague Collection, MSS Eur. E. 252/29; Shan States and Karenni. List of Leading Families (Corrected up to 1939) (Simla: Manager, Government of India Press, 1943), p. 7Google Scholar, IOR: V/27/70/57; H.J. Mitchell, Officer on Special Duty, Defence Department to Joint Secretary, Reconstruction Department, 1 May 1943, IOR: M/4/2808.

89 Burma Monthly Intelligence Summary, 11:4 (Apr. 1938); 11:5 (May 1938), IOR: M/5/55. Government of Burma Report, June 1938, IOR: M/3/395.

90 Mitchell to Joint Secretary, 1 May 1943.

91 G.S. Hardy, India Office to W.D. Tomkins, late Jan. 1936, IOR: M/3/22.

92 S.W. Harris, Home Office to Stewart, 31 Jan. 1936, IOR: M/3/22.

93 E.J. Turner, Secretary, E.&O. Department to the Secretary, Finance Department, Central Revenues, India, 20 Jan. 1936; Minute by Rumbold, E.&O. 7048 (1935), 31 Oct. 1935; Extracts from the Minutes of the Thirtieth Meeting of the Interdepartmental Opium Committee held at the Home Office, 3 April 1936, IOR: M/3/22. Government Officer's Diary, 1 Jan. 1936, IOR: The Clague Collection, MSS Eur. E. 252/68. The Siamese came up with a report which, in effect, was a whitewash job to protect Manit and to discredit the Chinese informant, Myo Seng. By this time, the British were in possession of documented evidence implicating the Siamese. Thus, the Government of India could, if necessary, provide a comprehensive attack upon the Siamese report. Report of the Committee entrusted with the examination of the results of the investigations in the case of the big seizure of opium (12 May 1936); Craw to Stewart, Political Department, No. 78B36, 23 Dec. 1936, IOR: M/3/22.

94 Telegram, Foreign Office to Crosby, 3 April 1936, IOR: M/3/22.

95 Hardy, Report by the Representative of India on the League of Nation's Opium Advisory Committee on the Illicit Opium Transaction of January 1935 between Kengtung and Siam (10 June 1936), IOR: M/3/22.

96 Minute by E. Warner, 6 Mar. 1936, PRO: FO 371/20296 (171233).

97 Crosby to Eden, Confidential Despatch No. 108, 12 Mar. 1936, PRO: FO 371/20302 (17172).

98 Ibid.

99 Annual Report on the social & economic progress of the people of Kelantanfor the year 1936 (Kelantan: Cheong Fatt Press, 1937), pp. 8Google Scholar, 13, PRO: Colonial Office (CO) 827/2 (171756).

100 Ceylon Administration Reports, 1936 (Colombo: Ceylon Government Press, 1937), pp. A8Google Scholar, 10–11, 15–16, B4–6, 18, PRO: CO 57/250 (172106).

101 Minute by Rumbold, B3196 (1936), 11 May 1936, IOR: M/3/226.

102 Minute by Turner, B3196 (1936), 21 May 1936, IOR: M/3/226.

103 Minute by Dixon, B3196 (1936), 25 May 1936, IOR: M/3/226.

104 C.W. Orde, Foreign Office to Stewart, 8 May 1936, IOR: M/3/226.

105 Craw to the Foreign Secretary, India, Foreign and Political Department, No. 335B36 (2158), 28 Nov. 1936, IOR: M/3/22.

106 Crosby to Eden, Confidential Despatch No. 93, 8 Mar. 1937, PRO: FO 371/21052 (171233).

107 Minute by Ronald, F 1959/279/40, 10 Apr. 1937, PRO: FO 371/21052 (171233).

108 Minute by Ronald, F 3650/279/40, 28 June 1937, PRO: FO 371/21052 (171233).

109 Bailey to Eden, Confidential Despatch No. 230, 16 June 1937, PRO: 371/21052 (171233).

110 Minute by Clague, Burma Adviser to Zetland, re: Governor's Fortnightly Reports, 13 July 1937, IOR: M/5/46.