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Sub. enclosace
Mr. Fox to Viceroy Chang.
Your Excellency,
480
Canton 26th. September,'
In continuation of my note of the 24th. instant,
I have now the honour to submit for Your Excellency's consider-
stion the formal protest of the British firms in Hongkong in-
terested in the import of Indian opium against the new regula-
tions which have recently been issued by the Provincial Govern-
ment with a view to the registration of all shops selling raw
and prepared opium,
It is submitted by the British firms in question
that if Clauses 1,2 and 3 of these regulations are carried into
effect, the result will be that a certain number of native es-
tablishments selling raw and prepared opium will be ascertained,
registered and licensed, and this will curtail the sale of raw
opium, as only the native establishments so registered and li-
censed will be competent to purchase raw opium from the British
vendor. In effect the British merchant will have his trade
cut down to the limits of those who are permitted by Your
Excellency's Government to trade with him. Such a monopoly
would prevent other dealers from participating in the opium trade,
thus destroying healthy competition and crippling bus- iness, thereby causing heavy loss to importers, who will be at
the mercy of a few licensed shops who would be able to dictate their own prices.
The effect of Caluse 4 is to create a monopoly
and, as existing shops gradually decrease in number, and no new shops are permitted to take out licenses, the trade will soon be in the hands of a few privileged individuals. So many pre- texts can be found for closing down existing establishments that a sall ring or trust of the kind feared would probably be created within a very short period of time.
The procedure laid down by these regulations is burdensome and necessitates the payment of a license fee on each occasion that an individual purchases opium. This will of