}

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opium branch shops according to the terms of these Regulations, as they cannot be abolished altogether, and as permission cannot be granted to all to do 80, the original Regulations drawn up by the Anti-Opium Office shall be adhered to, ie., a certain limited number shall be fixed, and applications to the Office for register shall be admitted according to priority until this number is reached. All applicants for such permission must produce security from a mercantile firm of recognized standing. As a restrictive measure, however, small opium dens, i.e., those with accommodation for only two or three smokers, shall not be licensed as above.

[This Document is the Property of His Britannic Majesty's Government.P

CHINA TRADE,

CONFIDENTIAL.

[26726]

No. 1.

38099 i

REC 'Rec 29 OCT 07 [August 10.]

SECTION 2.

0

Sir J. Jordan to Sir Edward Greg.-(Received August 10.)

(No. 159.) (Telegraphic.) P.

Peking, August 9, 1907. IN reply to your telegram No. 87 of the 18th ultimo, I have the honour to suggest the prohibition of the trade in prepared opium, both export and import, between Hong Kong and China, and that measures should be taken by both Governments to prevent smuggling into their respective territories.

The opium farmer's licence entitles him to prepare and sell within the Colony only, and he would therefore not be prejudiced by such a measure, nor would the legitimate trade of Hong Kong be appreciably affected, as, according to Customs returns, less than 13 piculs formed the total amount of prepared opium imported into China last year from foreign countries and Hong Kong, and of these Macao supplied 4 piculs.

[2623 k--2]

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