(3) Not to part with any Opium in the raw state either by sale or otherwise, but only prepared Opium fit for smoking,

(4) Not to grant to any person any licence to boil or prepare Opium.

(5) To have one establishment only for boiling; such establishment to be approved by the Governor.

(6) Not to have loose Opium (as defined by the Raw Opium Ordinance, 1887,) elsewhere than in his boiling establishment or any raw Opium other than that covered by removal permit.

(7) To supply the licensees of Opium Divans, duly licensed by the Colonial Secretary under the Prepared Opium Ordinance, 1891, with any Opium and dross Opium required by them, at rates not exceeding the market rates at the time.

(8) No transfer of the grant will be permitted except with the previous approval of the Governor in Council.

FORM OF GRANT.

TO ALL TO WHOM THESE PRESENTS SHALL COME I

Governor and Commander-in-Chief of the Colony of Hongkong and its Dependencies, and Vice-Admiral of the same, in Executive Council, send Greeting: WHEREAS, by the Prepared Opium Ordinance, 1891, it is enacted, amongst other things, that the Governor in Council may grant, in the manner provided by the said Ordinance, to any person, for such considerations and upon such conditions and for such periods and in such form as, from time to time, may be determined by the Governor in Council, the sole privilege of preparing Opium, and of selling, within the Colony, Opium so prepared, inclusive of the privilege of collecting dross and of preparing and dealing in dross Opium; AND that the accepted bidder for, or the grantee of, such privileges, before he shall become entitled to the benefit thereof, shall give such security as the Governor in Council may require for the due performance of the conditions of such privileges and of his stipulations or agreement in respect thereof; AND WHEREAS the Governor in Council has accordingly agreed to grant to

(hereinafter referred to as the Grantee)

the privileges hereinbefore mentioned, and known as the Opium Farm, established under the said Prepared Opium Ordinance, for the term of three years from the 1st day of March, 1907, (inclusive), for the monthly sum of

on the conditions hereinafter contained: AND WHEREAS the Grantee has given the prescribed security for such grant to the satisfaction of the Governor in Council.

KNOW YE, therefore, that in pursuance of the said agreement and in consideration of the premises and of the payment by the Grantee of the monthly sum of

on the first day of each month, in advance, during the term hereby granted, and in pursuance of the said Ordinance, I, THE SAID GOVERNOR, by and with the advice of the said Executive Council, have given and granted and by these presents (the form whereof has been determined by me in Council) under the seal of the said Colony for myself and my successors in the Government of the same, DO GIVE AND GRANT unto the Grantee, his executors and administrators, the sole privilege of preparing Opium and of selling within the said Colony (including the New Territories) Opium so prepared inclusive of the privilege of collecting dross, and of preparing and dealing in dross Opium, for and during the term hereinafter expressed, in conformity with, and subject to the Ordinances in that behalf provided, and to the following conditions and stipulations:---

1. That the said monthly sum of $

shall, during the said term, be paid regularly in advance to the Colonial Treasurer and without demand on the first day of each calendar month, the first of such payments being made on the 1st day of March, 1907.

2. That the Grantee shall not transfer this Grant to any other person or corporation unless he shall first have obtained the written permission of the Governor in Council to do so; any permitted transfer shall be in such form as the Governor in Council may approve.

3. That the Grantee shall have no Opium in possession except what is reported through the Imports and Exports Office; and, unless the special permission of the Governor to exceed that amount is obtained, shall not draw more than three hundred chests in any two consecutive months, of which not more than 175 chests shall be drawn in any one month.

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