4. of Hongkong and Canton.

The trade carried on by the Petitioners' said Steamers plying between the ports of Hongkong and Canton amounts on the average to an annual aggregate sum of $400,000.

The Opium trade in the Colony of Hongkong is regulated by Ordinances No.22 of 1887, No.21 of 1891, and No.22 of 1891. And under or by virtue of these Ordinances the Governor in Council grants to the Opium Farmer the sole privilege of preparing Opium and of selling the same within the Colony in manner thereby provided.

For some years past the question of the smuggling by Chinese of opium into Canton by Petitioners' said Steamers has been of serious proportions and caused Petitioners grave anxiety, in spite of every precaution taken by your Petitioners to prevent smuggling.

On the 3rd September 1888, in consequence of the increase of this smuggling, your Petitioners commenced a correspondence with the Hongkong Government on the subject with the object of obtaining relief from the difficulties and risks under which their Canton trade was being carried on. This correspondence is set out in the printed book of Correspondence and other papers sent herewith for reference. It will be seen from a perusal of this book that your Petitioners have been put to considerable expense and trouble in connection with this question.

Towards the end of the year 1888, your Petitioners, the Hongkong Canton and Macao Steamboat Company Limited, with the object of endeavouring to put a check to this smuggling and in accordance with suggestions made by Sir Robert Hart, Inspector General of the Imperial Maritime Customs of China, instituted and paid for a preventive service consisting of thirty-five men under the charge of a head European Preventive officer. This preventive staff boarded and searched all your Petitioners' said Steamships and took all such measures as suggested themselves to prevent or detect smuggling. It is still in force and costs the Company an annual sum of $2,500. Your Petitioners submit that they should not be called upon to bear this expense and that they would not have to do so if they were adequately protected by the legislation of this Colony.

Nothing definitely hopeful came of the correspondence above referred to until your Petitioners, the Hongkong Canton and Macao Steamboat Company Limited, received a letter dated the 13th October 1889, from Mr. Lister, the then Acting Colonial Secretary, in which Mr. Lister stated that the draft of an Ordinance was under consideration which it was hoped would tend to modify, if not altogether remove, the causes of complaint on the subject of Opium smuggling.

That your Petitioners had good grounds for complaint was admitted by His Excellency, the Governor, in a speech which he made in the Legislative Council held on the 24th November 1889. At that meeting, the Honourable Eneas Kelly, the then Chairman of your Petitioners, the Hongkong Canton and Macao Steamboat Company, ...

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