3

Copy.

No.204.

(32537).

Sir:-

REC

BRITISH EMBASSY, lg

TOKYO,

578

35163

• 19h 26 REF 08

August 19th, 1908.

In my despatch No.154 of June 16th when forward-

ing a report by His Majesty's Consul at Tamsul on

the economic situation in Formosa, I made the follow-

ing observations;

"It is interesting to note that there appears

to be no decrease in the opium habit in the island,

although one of the reasons put forward by the Japan-

ese Authorities more than ten years ago for institut-

ing a Government monopoly of the drug was that the

habit could be so much discouraged that it would

speedily die out".

The most recent news on the subject from Formosa

is not encouraging. It appears that the Formosa Gov-

ernment in their eagerness to obtain funds had re-

course to the following device. A great parade was

made

Sir Edward Grey, Bart., M.P.,

&c., &c., &c.

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