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In European Merchant who was in communication with the government regarding the Opium Fare, Mr. André being the European Agent of late Opium Farmer.

It is a matter of notoriety that Mr. Pitman and Mr. André were both friends of the Governor and it is also well known that Mr. André, if the old Opium Farmer had got the Fare for another three years, would have received as the European business Agent a similar remuneration to that paid to Mr. Pitman. As to the amount of remuneration it is the opinion of leading English merchants whom I have spoken on the subject that it was moderate.

I quote from Mr. Pitman himself that in mercantile transactions in which he has been employed by the China Merchants Steam Navigation Company and the Japanese Government he has received from home to five remuneration on a similar and sometimes larger scale.

With reference to His Excellency's request that I would look into the proceedings of both the Executive and Legislative Councils and report what is recorded on the subject, I find that after an unusually long notice had been given as reference to the date of the Farm, the tenders finally came before the Governor in Council on the 16th January 1879, whereupon it appearing that the highest offer was $192,000 offered by the Singapore Saigon Opium Farmer, the Governor thought it...

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