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of the Chuen Fa farm under the existing circumstances.
4. In addition to the cause already indicated there are two other principal factors which go to make our client's present posi-tion what we have already deemed impossible; these are that in the events that have happened his tender for the farm was considerably too high to admit of the same being worked at other than a loss and that the price that he is obliged to pay for the raw opium which he requires has very largely increased during the current year.
5. Our client has now been carrying on the farm for more than 6 months of the present term. During that period his average monthly loss has been about $71,000, representing a total loss of something like $423,000 and it is of course impossible for him to continue to carry on the farm under such circumstances.
6. Our client recognises that failure on his part to continue carrying on the farm may involve the forfeiture of the security provided by him, but of the two alternatives he not unnaturally prefers a certain present loss of $455,000 to a prospective loss of some $2,000,000 during the remaining 30 months of the farm term.
7. If therefore our client is to continue to carry on the farm he feels that it can only be on the basis of paying a considerably smaller rental to the Government therefor than he is at present paying and for such a reduction he accordingly now begs to apply.
8. We have the honour to add that it is doubtless within the knowledge of His Government that very large reductions have just lately been granted by the Government of the Straits Settlements in respect of the Singapore and Penang farms under similar circumstances.
The Hont J. D. Kay, C.M.G.
Colonial Secretary.
We have etc.
(Signed)
Deacon, Looker & Deacon.