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50% of the opium which is imported into Hong Kong is consumed locally, the remaining 50% is smuggled, 35% to China and 15% to Macao. The Farmer complains that the Police do not afford him the same protection as they used to do. He states that he has been informed that the magistrates have instructed the Police to refrain from interfering in Opium matters, saying that they should only seize or stop opium when it is being transported.
On account of the large quantity of opium which is, according to the Farmer, smuggled from Macao by the Steamboat Company's vessels (amounting in one case to 1100 Taels, on several occasions over 200, and frequently to 30), he has asked (a) to be allowed to establish a preventive service on board the steamers coming from Macao, with European supervision; (b) that a law similar to that in the Straits Settlements should be passed, inflicting heavy penalties on steamers bringing prepared opium into Hong Kong; and (c) that merchants or traders aiding and abetting the smuggling of opium into Hong Kong, by giving facilities or supplying capital to opium smugglers, should be prosecuted.
Long discussions took place on all these points and on the question of reducing the price of the Farm. It was pointed out to the Governor that, if the measures were ready, the Farmer would not be losing at the current price. The Governor has told the Farmer that he would recommend the Police to give him all the assistance which they formerly afforded.