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him; that in the draft opium ordinance, of which he had received a copy, many Hong-Kong firms are in favour of the Chinese Customs & Excise duties that, as far as he is concerned he is willing to accept.

The representations had been received; that others were being considered; that he would ask the Government to communicate with the Steamboat Company that, if the Company in any way would not help in preventing smuggling, we should recommend that, in view of the large quantity of opium which we had reason to believe was smuggled into Hong Kong by their steamers, heavy penalties should be enacted against any boat which was found; that, in the amended Harbour Ordinance regulating steam launch traffic would place these vessels much more under control.

2. but that he does not believe that much, if any opium, is smuggled into Hong Kong from Macao (unless it be opium which has previously been smuggled from Hong Kong) because two cargoes per week pay duty at the Hulk for the Macao district. Mr. Brown is of opinion that a considerable quantity of opium is smuggled into Hong-Kong from Macao, on the other hand, Mr. Arnold (Secretary of the Macao Steamboat Co) maintains that very little opium is smuggled into Macao.

This we have brought to the attention of the Farmer.

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