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($246,325 on a present total of $477,600) derived from the sale of Opium in Hongkong, as stated in the report in the Blue Book for 1889; and whether it was contemplated to take any steps to discourage the increased use of Opium which such increase of revenue indicated.

BARON H. DE WORMS.-The Opium Farm at Hongkong was leased for a period of three years from March 1889, at $477,600 per annum, as against $182,400 per annum for the preceding three years. The farmer has the sole privilege of preparing Opium in Hongkong, not only for consumption in the Colony, but also for export, and the amount exported to China, Australia and other places considerably exceeds the amount consumed in the Colony. The Secretary of State has no reason to think that the above-mentioned increase of revenue was due to the increased use of Opium by the people of Hongkong, but it is believed that it was mainly due to the New Opium Ordinance passed in 1887 which had the effect of preventing the smuggling of prepared Opium into China. (Hear, Hear.)

GENTLEMEN,

your

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HOUSE OF COMMONS,

1st May, 1891.

I duly received your letter with printed correspondence, which appears to me very striking. I put another question to the Under Secretary to-day - copy enclosed - I was surprised to learn from his reply that he had not already seen the correspondence above referred to. He said the Hongkong Government would be urged to sustain the laws against smuggling - the late success of Mr. PEASE'S motion will contribute to that end.

I am sending him now the document you sent me, and trust it will have some effect. I would be most happy to be of further use to you.

Very sincerely yours,

ALFRED WEBB.

THOMAS ARNOLD, Esq.,

Hongkong.

SIR,

OFFICE OF THE HONGKONG, CANTON & MACAO STEAM-BOAT COMPANY, LIMITED.

HONGKONG, 16th March, 1891.

We notice that on the 29th January last you asked the Under Secretary of State for the Colonies in the House of Commons a question regarding the revenue derived from the Opium Farm in this Colony.

As throwing some light on this matter we beg to hand you herewith printed copy of certain correspondence between the Canton River Steam-ship Companies and the Hongkong Government upon the subject of the working of the Opium Ordinance of this Colony as they affect our business of shipowners.

With reference to the concluding paragraph of our letter dated 24th September, 1889, wherein it was stated that we were addressing the Secretary of State for the Colonies upon the subject, we may explain that we refrained from carrying out that intention upon a promise being made by the Hongkong Government that legislation would shortly be introduced, which, it was hoped, would have the effect of remedying the evils of which we complained.

We have since repeatedly urged the fulfilment of that promise, but so far without success.

ALFRED WEBB, Esq., M.P.,

Dartrey Park, Rathmines,

DUBLIN.

We are, Sir,

Your obedient Servants,

THOS. ARNOLD,

Secretary, The Hongkong, Canton & Macao Steam-boat Company, Limited.

BUTTERFIELD & SWIRE,

Agents, The China Navigation Company, Ld.

Extract of proceedings in the House of Commons 1st May, 1891.

SMUGGLING OF OPIUM.

Mr. WEBB asked the Under-Secretary of State for the Colonies whether his attention had been called to a correspondence between the Hongkong, Canton, and Macao Steam-boat Company and the China Navigation Company on the one side, and the Government of Hongkong on the other side, in which the companies complain that opium has been smuggled, or been attempted to be smuggled, from Hongkong to China in their vessels without their knowledge, but with the connivance and for the profit of the opium farmer at Hongkong.

BARON H. DE WORMS.-My attention has not been called to any such correspondence as is referred to by the hon. member, but the Secretary of State has every reason to believe that the Government of Hongkong already enforces such measures as appear to be practicable for the prevention of smuggling. A report will, however, be called for from the Governor on the subject.

DEAR SIR,

OFFICE OF THE HONGKONG, CANTON & MACAO STEAM-BOAT COMPANY, LIMITED.

HONGKONG, 5th June, 1891.

We beg to acknowledge with thanks your letter of the 1st May enclosing copy of a question which you had asked the Under Secretary of State for the Colonies on that date in the House of Commons, and which we trust will help towards remedying the abuses of which we complain.

We were surprised to hear that the Under Secretary of State had said that "the Hongkong Government would be urged to sustain the laws against smuggling" for no such laws exist. As far as this Colony is concerned, anybody may smuggle or attempt to smuggle prepared Opium into China with impunity, provided only that the Opium be covered by the Opium Farmer's permit. Possession of Opium without such a permit is a punishable offence, and when one of our Captains had confiscated opium which it had been attempted to smuggle into China by the steamer which he commanded, the Opium Farmer had the audacity to prosecute him in the Police Court for being in possession of opium without his permit and obtained a conviction! The confiscated Opium was afterwards returned to the Opium Farmer!!

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