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Enclosure ho.

C.O.

COPY

2432

Colonial Secretary's Office, Hongkong, 21st. November 190800

483

Gentlemen,

With reference to your letter of the 20th.instant and to previous correspondence on the subject of the new Regulations introduced by the Chinese Authorities at Canton for the control of the trade in raw opium. I am directed to inform you that the Governor has received a despatch from His Majesty's Minister at Peking to the effect that he regards it as doubtful that the Regulations, as they stand at present, can be regarded as establishing a mono- poly; that they appear to do little more than reproduce the rules passed for the enforcement of the Opium Edict of September 20th, 1906: and that he has accordingly in- structed His Majesty's Consul General at Canton that, while the working of the system will doubtless require to be carefully watched, it is inadvisable to take further action pending reference to His Majesty's Government.

His Excellency is also in receipt of a despatch from His Majesty's Consul General at Canton, of a later date than the Minister's despatch, in which Mr.Fox states that the Viceroy has decided not to proceed with the re- gistration of raw opium shops for the present, but will confine himself to enforcing those clauses in the licensing regulations which apply to the registration of smokers and the control of prepared opium shops.

I am, Sir,

Your obedient servant,

(Sd) P. H. MAY,

Colonial Secretary,

Messrs. David Sassoon & Co., Ltd.

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