relations with China of adherence to London Commercial principles & to a certain extent, of local Revenue, may all be attained by the imposition upon Opium, imported into Hong Kong of such a moderate duty as may not deflect it down Macao through the means of the Smuggler and by granting no drawback on its re-exportation.

Considering the existing facilities for trade,

on the Contraband

moderate

Carried without concealing any thing, a very cate of duty would probably have the effect of turning the balance

"

20

Against its introduction into that Colony for purposes of illicit transactions. While it is obvious that the many opportunities for smuggling

into the Colony

an article of so much value as Opium is to its bulk

Compared with its weight

render careful cautions as to the amount of duty charged upon Consumption

What rate ad valorem which

would effect the proposed

is a question which "Will must be left to the judgement of the Governor & Council on the spot. It will however be obvious that

your aim should rather be to prohibit or impede.

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