It is true that the present outbreak seems to be exceptionally severe.
The last serious outbreak was in September 1906, and I have thought that we got over the effects of that cyclone. However, since then, high exchange value rates followed, and the abolition of the revenue from opium has been a matter of concern for the Colony.
I know of nothing that can justify such expressions of deplorable condition in funds. The Colony has barely acknowledged that the situation is requiring due consideration.
RE 614 to whose representations I should acknowledge C.P.L. without comment.
25 Park Lane, W.
4th June
Dear [Name],
As you already know, the Hong Kong Colony is greatly perturbed at the proposal of the Home Government to close the opium houses.
It has been assumed that the action would be immediate. There can be no doubt of the serious difference which would be made in the finances of the Colony by an immediate prohibition of opium smoking.
The Colony is suffering severely from bad trade. The yarn trade with India is in a depressed condition, and the losses both of merchants and dealers are very heavy. Failures have occurred, involving many people in absolute ruin.
The volume of trade in tussore (the trade pass has also been bad) has been inflicted a heavy blow upon all who have their capital invested in the Colony.
Plague and typhoons have accentuated the distress.
I may possibly be seeing Mr. Sale shortly.
Yours sincerely,
Lugard
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