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7 became subject to the entire and most lirect fiscalisation on the part

of the Macao Government.

Thus it has ever been, and it shall always be.

There being five dealers in war material and I having granted

a permit to one of them to bring war materials into Macao for his busi- ness, it was just and necessary that a similar permit should also be granted to the remaining four dealers.

This does not signify, however, that the first remittance was

sold out, at the time that the second request was made.

No. All the war materials on arrival, were deposited and

stored in the Government Magazine; and from there were taken out only those which this Government has permitted in accordance with the abso-

lute needs of the legitimate commerce of Macao.

Of the 500 arms which have arrived from Hongkong, only 8 were

sold to Chinese junks; 47 were exchanged for old and useless arms be-

longing to fishing junks.

The remaining arms are under police supervision; and I can guarantee to Your Excellency that the Harbour Vaster of Wacao, who is a high official in the Portuguese Royal Navy, is most scrovulous and care- ful in the matter of furnishing fishing junks with arms.

Each of the five dealers in war materials in Vacao, doing their sale business under the rigorous supervision exercised by the Government, has to possess a certain stock of arms and ammunition; and it is for this reason that the Wacao Government has granted to each of them a permit to import from Hongkong a fixed number of arms and amouni- tion; and the Government will only grant new permits, when the war materials imported shall have neen sold out respectively and as above statel, under the rigorous supervision on the part of this Government. Your Excellency may rest assured that not a single gun nor

a single cartridge can leave the Government Magazine without the know- ledge and consent of the Portuguese Government. This being so, Your Excellency may rest quite assured that, from Vacac there has never been, nor shall there ever be any contraband of war materials, because such has never been permitted by or consulted to by this Government.

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