considerable shipments by junks which will now go to such places in steamers. As Now that the whole of the duties are collected by the Foreign Inspectorate this competition have ceased, and there will be more rebate. The retail trade must be very much affected by this fact, which is altogether independent of the proposed Bill. The Bill by effectually preventing smuggling will further affect the retail dealers from whom opium has been procured for smuggling.

It is understood that the scheme is to be matured in the course of a few days. If it is one that can be adopted by the Government and is likely to be acceptable to China, I will telegraph at once to Sir J. Walsham, and if he informs me that it is approved, I will then telegraph to you for instructions on the subject.

3. 5th April, 1887. I enclose a report, which is from "the" Daily Press. mail Supplement, 13...

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