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to such a request as had been made by the holders of the Farm.

8.

the Farmers

Upon this decision being communicated to

Solicitors, the Solicitors for 4 persons who had

found the security of $555,000 for the Farmers and who became

alarmed lest their security might be estreated if the Farmers

resigned the Monopoly, approached the Government with offers

to take over the Monopoly at a reduction.

They made a tentative offer on the basis

of a reduction of $50,000 a month which position was quickly

abandoned when it was pointed out to them that on the Farmers'

own shewing their losses could not be placed higher than

$35,000 a month. They then made offers on a descending scale

till $20,000 was reached.

9.

At this stage I again consulted the Executive Council, and placed before them the proposition that in-

asmuch as judging from careful enquiries that had been made

there was no reasonable prospect of re-letting the Monopoly,

if it were resigned, at more than $150,000 a month, the Government would incur slightly less loss by granting a reduction

of $15,000 a month than by so re-letting it.

The total receipts for 28 months from the

1st. of November at $170,000 a month would be $4,760,000 while

28 months at $150,000 plus $555,000 estreated security mounted to $4,755,000. Moreover, the trouble and delay in realising

the security the bulk of which is represented by landed property in Singapore from which place the Opium Farmers and

their securities come, would be saved.

10.

One of the Unofficial Members suggested

that before a decision was arrived at on this question, certain

Chinese

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