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FOR AR

V

S

January 21st and His Excellency subsequently informed

me that a note of my observations had been communicated to the Minister of Colonization who had sent the

necessary instructions to Formosa.

342

Your Lordship will remember that in March 1890

when the importation of opium into Formosa was suddenly prohibited; at the instance of the Governor

of Hong Kong and of Messrs. Sassoon and Company,

I obtained permission from the Japanese Government

for the introduction of two shipments stated to

have been already despatched from Hong Kong before

the prohibition became known there. In Formosa the

price rapidly rose, and a little speculation was indulged in by some members of the British firms at

Anping. This furnished a stimulus to smuggling,

and so much opium was surreptitiously introduced

from Amoy, that the speculators were unable to sell.

As the fact of smuggling being carried on was officially brought to the notice of the Japanese Authorities at Anping by Mr. Longford and by myself here,

without anything being done to stop it, a claim

might possibly be made by the holders against the

Japanese Government for loss of market owing to the

laches

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