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China to Hongkong and the New Territories, and to take effective measures to prevent prepared Opium being so exported.
The price of prepared Opium in Hongkong, owing to the enormous rental paid for the Opium Monopoly, varies from $3.30 to $3.50 per tael while the price of prepared Indian Opium in Canton is only $1.46 to $1.53 per tael and of prepared Native Opium $1.11 to $1.18 per tael. It will be readily understood, therefore, that the principal difficulty the Opium Farmer has to contend against is the smuggling of prepared Opium into Hongkong and the New Territories from China.
7.
With regard to the second proposal, it is unnecessary if the first is granted. Nevertheless I would urge that it should not be conceded without some compensating advantage being first obtained.
I would respectfully draw Your Lordship's attention to the fact that this Government, without being consulted in the matter, has been seriously compromised by the decision of His Majesty's Government to restrict the export of Opium from India. This action necessitated the addition at the eleventh hour of a proviso to