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A limited number of licenses should be granted, having regard to the requirements of the population, for the preparation and sale of prepared opium for local consumption. These licensees should pay a fee, and a higher charge say $2 or $3 a ball for every ball prepared at the factory. It is in this connection that a store would be requisite, under the control of the Government and either in the factory or adjacent thereto. The licensees for local consumption might not want to boil a whole chest at once, but they ought to have the facility of having a broken chest under Government control, from which they might draw according to the requirements of their trade.
This opium could be issued as it was wanted. The object of this is to keep up the system at present in force whereby the possession by any one of loose opium is prohibited. They would have to buy a chest at least and lodge it in the store. China could have no complaint to make if this plan were adopted, because the loose opium would be in the hands of a Government Officer.
As to (b) dross opium. It too must be prepared in the Government factory. Licenses could be granted to divan keepers and their number limited as might seem advisable, at such charges as it might be thought proper.
The difficulty would be to allot the licenses in all cases. The applicants for boiling for export would be necessarily very limited, but there would