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Government House,

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25th. November, 1908.

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With reference to the ponultimate paragraph

of Your Excellency's Despatch No. 494 of the 29th, ultimo, I have the honour to refer you to peres 3, 7, and 8 of my Yemorandım regarding the restriction of Optim in Tongkong and China, a copy of which accompanied rg Despatch Confi- dential of the 12th. instant.

2.

From the passages quoted Your Banellmov will observe that the atatamant in the Hemorial by the Board of "inance that "it appears that in Hongkong where "the Optum imported from abroad la prepared that, under the

*arrangements for sales under official contol, 15 anses "dally are disposed of by, the Opium Company, while as a "matter of fact lea: than three cases are required for *Vorgkong consumption the remainder eine 1111eltly export- "ed into China" is entirely false ss Your Excellency has not falled to point out in your covering Despatch to "tr Edward Grey. I have the honour to invite Your Excellen-

cy's attention to the slander on this Colony to which the words quoted give currency, and to request you to take such action as you may deen advisable to bring about their with. drawal

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Your Excellency le

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Boy Ft Lugare

Governør, &0.

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