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would be competition for the others and a practical way would be for a board consisting of the Treasurer and Captain Superintendent of Police to allot the licenses at such sums as they might determine having regard to the locality and the competition.
A small number of 1st class divans for smoking prepared opium might be licensed as well as those which are licensed for gross opium and which are chiefly used by the Coolie Class. This system could not come into force of course until the completion of the current grant to the opium farmer, but if it is thought desirable to revert to the direct licensing system this is something of the nature of the plan which would have to be adopted.
In 1883 when the licensing system was adopted in Hong Kong opium was to be had loose in the Colony. There was no arrangement with China to prevent the possession by any one of broken chests, and opium in the raw state was sold freely in small quantities in the Colony. There was no attempt to limit the consumption but only to obtain a revenue from the drug when the monopolists thought they had cornered Government.
(Signed) J. RUSSELL.
12th June, 1893.