existence.....to the fact that it is a free port.46

But a proviso has been added to the form of grant that if the exportation of Raw Opium from India is so restricted during the term of the lease as seriously to affect the business of the grantee, the Governor in Council may reduce the rent payable under the grant; similarly if export of Raw Opium from India is prohibited during the term, the grant may be cancelled.

The figures of the Opium revenue and the total revenue for 1904-6 are as follows:-

1904 1905 1906 Opium 81,945,000 2,040,000 2,040,000 Total 86,809,047 6,918,403 7,035,011

40928/07

An arrangement has recently been arrived at between the Chinese and Hong Kong Governments by which both Governments have agreed to prohibit the import and export of prepared opium between Hong Kong and China, and are proposing to take measures to prevent smuggling into their own territories.

The Opium question in the Eastern Colonies was brought up in the House of Commons on March 18th, 1907 (Hansard Debates on Colonial Affairs Session 1907 p.595 ff). Mr Churchill, in replying (id. p.610), said that Lord Elgin, in consultation with the India Office, would watch every opportunity which might occur for bringing the legislation of the Colonies and Dependencies more into harmony with the overwhelming opinion of the House of Commons.

It may be added that a Commission has reported on the Opium question in Ceylon; and that the Secretary of State is awaiting the views of the Governor in Council upon it.

75.

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