(O.P.Y.)

Sir,

482, Queen's Road Central,

Hongkong, 19th November, 1904.

039

REC'D

JAN 05!

On behalf of our client, the Opium Farmer, we have the honour to address you as follows:-

1. As you are no doubt aware, our client has been, through us, in communication with the Government of the Colony since the month of December last, with the view of obtaining the suppression of the unauthorised sales of certain compounds containing opium, usually sold in the form of pills or wine.

2. Our client attached great importance to the suppression of these sales, which, since the month of September, 1903, when the retail price of opium was raised, have seriously prejudiced his monopoly. From the existing communications between the Government and ourselves, he was led to the belief that his representations in this respect would be given effect to, and it was in reliance on this that he took up the Farm for the current term; had he had reason to think otherwise, he would have preferably not taken up the Farm and allowed his deposit of $90,000 to be forfeited.

3. Our client learns that the Government is now bringing forward a Bill for the purpose of authorising the sales above referred to, but imposing a tax upon the opium contained in the compounds, and he understands that this is as far as the Government feels it can go in the matter. As we have already had the honour of indicating, our client looked for considerably more than this, and whilst he disclaims any intention of suggesting that the Government has not kept faith (if the expression may be allowed) with him in the matter, for he surmises that there must be substantial reasons why the Government is not disposed to do more, he feels that the proposed legislation will so insufficiently ameliorate his position, which has now for some time past been something like impossible, that he is compelled to intimate his inability to continue the carrying on of the business.

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