Restriction in the
Colony of
30
has many other resources, such as the development of minerals, a tax au spirits and the purification of her system of collection of taxes.
So far I have dealt with the aims of the Chinese Government, and the direct assistance afforded to it by India and Hongkong in its efforts to restrict the Hongkong. importation (legally or illegally) into China of raw or prepared opium. I will now pass in review the methods adopted by the Hongkong Government to restrict and control the consumption of opium within the Colony. I will add some proposals by which restriction may be made still more effective in the future.
(a.) The Farm".
Enhances prices.
Checks smuggling.
The most effective of these, both for restriction and control, has, as experience proves, been the institution of a monopoly leased for a specified period of three years to a "Farmer", for the sole right to prepare opium for sale, and to sell it, in the Colony. His right to import prepared opium without declaration and to export it were also recognised. The farin is a lucrative business and its acquisi- tion therefore is the object of keen competition, and the Government derives from the sale of the Monopoly a sum equal to nearly a fourth of its entire Revenue. Seeing that the farm is a restrictive agency this Revenue is entirely legitimate and in any case is no more subject to criticism than the licence fees derived from public houses here or in England. The Government derives no other revenue from opium, except the negligible licences to divan keepers. I have already in a previous paragraph quoted the conditions imposed by the terms of his licence upon the Farmer, and the privileges reserved to him by Ordinance. In order to protect his Monopoly the Farmer has to employ a large staff of detectives and to offer rewards to informers.
In
In order to pay for these and also the high fee to Government he is com- pelled to enhance the retail price of opium, and this enhancement has been pro- gressive in each triennial period for which the farm has been let. In 1900 the price of prepared opium in Hongkong to the smoker, was $1.50 per tael: 1904 the next Licencee put up the price to $3 which was again increased in 1905 to $3.30. Thus the amount of opium purchasable for 10 cents has been as follows between the years 1896-1904 :-
1.5, 1.2, 1, 8, 57,
8, 57, 4,
3, mace (14 oz.)
175, 195, 228, 233, 243, 293, 331, thousand population.
The price in Hongkong is therefore much higher than in the neighbouring city of Canton. In Hongkong it varies from $3.30 to $3.50 per tael while in Canton it is from 80 cents to $1.53.
This fact naturally encourages smuggling into the Colony, and since Hong- kong, being a Free Port, has no Customs Preventive Service it would be impossible to check the smuggling of raw or of prepared opium as effectively as the Farmer can do it when his own pecuniary interests are involved, for it must be remembered that the Colony of Hongkong consists of an island and a peninsula, around whose shores are fleets of trading and fishing junks, while opium being light and of small bulk is easily concealed.
The Farmer can employ spies and informers, both to check smuggling and to detect illicit boiling of opium, but such methods should, when possible, be avoided by a Government on any extended scale. The Government, however, renders him all possible assistance and issues search warrants on information supplied by the Farmer. The Farmer's Excise Officers also search all persons landing in Hongkong, except a few exempted for public service. This search is most unpopular amongst the Chinese and exemption incidentally stimulates men to come forward for public service. The Farm is disliked in consequence of tlie search which, however, it would be equally necessary to maintain if the Farm were abolished, (in which case the odium would be incurred by the Government), unless restriction of opium ceased. Beyond doubt the creation of a Monopoly in Chinese hands is the most effective method conceivable for controlling the smuggling, sale, and use, of opium in the Colony.
Sir J. Russell, Chief Justice of Hongkong who had made an exhaustive study of the opium question reported as follows on 6.1. 1892: The only practicable way in my opinion of getting any proper revenue out of opium in a free port is by levying a tax on the Manufactured Article, just as on manufactured tobacco or on spirits. Opium in the raw state is not useable. It has to be made fit for smoking, and the raising of a tax on it is just like raising a tax by distilling licenses, or the duty on spirits or tobacco. To diminish consumption of opium, to get an adequate Revenue, and to help China to put down smuggling I am satisfied the Farming system properly controlled will under local circum- stances best carry out Lord Knutsford's wish to diminish the evils of the opium traffic independently of Revenue." In this view the then Governor and Executive Council concurred.