The memorialists claim that there has already been a large decrease in the production of native opium; but, while the figures contained in the table dealing with the sale or distribution of foreign opium attached to the Memorial, and probably derived from the returns of the Imperial Maritime Customs are reliable, there is no doubt that the statistics given for the production and sale of native opium, based as they are on native returns, are grossly under-estimated and inaccurate.

In conclusion, it may be well to refute the statement made in the Memorial that the Hong Kong opium farmer is allowed to boil fifteen cases of opium daily, that less than three cases are required for the Colony's daily consumption, and that the balance is illicitly exported to China. Had the Board read the report of the Commissioner of Customs for Kowloon for 1907, it would have found that the Hong Kong opium farmer boiled only 725 cases during the year, and that forty-one of these cases contained Chinese opium. In other words, the Hong Kong opium farmer boiled less than two cases of raw opium daily, and the Commissioner of Customs states that part of the opium so prepared was exported to Annam and the Straits Settlements.

I am forwarding a copy of this despatch to the Government of India and to the Governor of Hong Kong.

I have, &c.

Inclosure in No. 1,

(Signed)

J. N. JORDAN.

MEMORIAL by the Board of Finance giving the returns of foreign imports of opium and of the native production, together with the sales thereof, and suggesting a mode of procedure in the matter.

(Translation.)

ON the 11th October, 1907, the Grand Council received the following Decree from the Throne:

CC

The sale of opium under official control is of supreme importance in the suppression of smoking, but a detailed inquiry must be made as a basis on which to act. The returns of foreign imports and of native production and of the amounts of sales must all be collated in detail. The Board of Finance is to depute capable and upright departmental officials to investigate the matter in its entirety with the utmost expedition, at the latest within one year from the present date, and a mode of procedure is to be submitted to us for our assent thereto."

In accordance with the Imperial command we deputed officials to the various provinces to make a full inquiry, and it appears that the amount of native production of opium in the 31st year of Kuang-Hsü was 142,698 piculs, in the 32nd year 148,103 piculs, in the 33rd year 119,983 piculs, thus showing a reduction of about 20 per cent. The sale returns for Kuang-Hsü, 31st year were 141,525 piculs, for the 32nd year 135,693 piculs, and for the 33rd year 97,738 piculs, thus exhibiting a reduction of between 20 and 30 per cent. The amount of foreign opium passed through the various customs-houses in the 31st year was 51,920 piculs, in the 32nd year 54,117 piculs, in the 33rd year 54,584 piculs, thus exhibiting no reduction whatsoever. The returns for the present year report reductions of from 30 to 40 per cent. up to 60 and 70 per cent. in the areas of opium cultivation. With regard to foreign imports, the British Government has agreed to reduce the amount, by 10 per cent, annually from January last on a total return estimated at 51,000 cases; it being the case that the reduction in the imports still falls short of the remarkable reduction in the native production and sale figures.

In our opinion, the early suppression of opium depends entirely on the energy of the measures adopted to suppress it. The adoption of a uniform method of sale under official control is certainly a procedure of high importance in connection with its suppression, but we will now proceed to report to your Majesties certain difficulties in connection therewith as the result of our investigation of the subject.

1. The British Government has promised its active co-operation in the suppression of the drug, and has issued an order prohibiting the export of Hong Kong prepared opium into China. It appears that in Hong Kong where the opium imported from abroad is prepared that, under the arrangements for sales under official control, fifteen cases daily are disposed of by the Opium Company, while as a matter of fact less than three cases are required for Hong Kong consumption, the remainder being illicitly exported into China. In view of the British Government having forbidden the export of Hong Kong prepared opium into China and of the suppression within two years of the opium houses which were so fruitful a source of taxation in the foreign settlement of Shanghae, the creation by China of bureaux for the monopoly of the sale of opium will assuredly dissatisfy foreign nations, and appear to them to be due to profit-seeking motives. This is the first reason for the impracticability of the arrangement.

2. The second reason against it is as follows: The gradual prohibition of opium over a period of ten years is in itself a humane measure, but a real determination to give up the practice, no matter how intense the craving for the drug, results in the Now that the official complete abandonment of the habit within a few months. classes have in most cases broken themselves of the practice within specified limits of time, while the rest of the population are earnestly striving to imitate them, it is obvious that, as the returns for the last year indicate a reduction of 20 to 30 per cent., Were an official a few years more will witness the complete eradication of the evil. opium monopoly to be started, a definite amount of opium would require to be fixed upon for purchase on the basis of that fixed upon in regard to foreign opium, and It would be what use could be made of the amount of opium annually left over? utterly useless long before the date assigned for its final suppression, and a possible result might be that the foreigners would compel us to purchase up the whole ten years' supply of the drug.

3. The third reason against it is as follows: The establishment of an official bureau would necessitate a most careful system of inspection. An enormous expense was incurred in Formosa by Japan in regulating her system of an official monopoly, and China's police system is but newly organised, and as yet incomplete for carrying out such a system. Besides, wealthy opium smokers provided themselves with sufficient supplies of the drug to satisfy their future needs when the order for its prohibition was first issued. The establishment of an official monopoly would result in causing embarrassment to the poorer classes, while the rich would remain unmolested. A system of rigid inspection would imply domiciliary visits at any hour to all houses where opium smoking was suspected, and this would result in abuses and oppression.

In order to rid our people of this evil without enforcing any oppressive measures, the best course is to adopt an arrangement indirectly based on the principle of official sales, as proposed by the Department of Governmental Affairs, viz., that all establishments selling opium and all opium smokers shall be supplied with permits, omission to secure such being punishable by a heavy fine and the scale of fees for the same being raised in amount on the basis of the proposals drawn up by present memorialists and the Ministry of the Interior,

In order to insure the still speedier suppression of the practice, poppy cultivation should be prohibited entirely within a period to be fixed, and Proclamations should be issued by the provincial authorities threatening members of the official classes persisting in the habit with loss of their rank, and the rest of the population with enrolment on a list of opium smokers, giving their names, ages, and places of All honours should be closed to residence, which should be published broadcast. them, and they should be treated as pariahs, so that a stimulus for the abandonment of the practice would thus be supplied by a man's natural ambition. This would show that the Government's prohibition of the practice is not due to a mercenary notice, and such a course would inspire respect abroad, and render a further reduction of foreign imports of opium practicable.

In the north and west the Moreover, conditions vary in different parts of China. suppression of poppy cultivation is the most urgent step; in the south and east, what is requisite is the suppression of opium smoking. It is in the maritime and riverine Provinces of Kuangtung, Fuhkien, Kiangsu, and Chekiang that foreign opium has a larger sale than the native drug, so that the prohibition of poppy cultivation in China would enable the foreigners to find a greater market for the sale of imported opium, so long as the yearly reduction was no greater than at present. Hence prohibition of In Yünnan, Kueichow, smoking is more pressing than stopping cultivation. Ssuch'uan, Shensi, Shansi, and Honan, the inhabitants smoke only native opium, so that the reduction of cultivation implies a similar reduction of opium smokers.

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