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of the new levy partakes of a monopoly and places them in a more favourable position than their competitors. In the arrangement made between this office and the firm in question, when it undertook, the collection, it was distipotly laid down that it must cordially co-operate with all dealers, and there is nothing granting it exclusive privileges. If other hongs out of regard for the general situation can subscribe for and take up shares, the Kuang Jung Yuan firm cannot debar them from participating. There need, therefore, be no fear of their being placed in an unfavourable position.
We would ask to be allowed to point out that in this matter of opium suppression Great Britain has promised her assistance. We, in conformity with the regulations of the Board, by instituting the prepared opium levy, by aiNİM checking the figures of consumption and by restricting the numbers of smokers,are simply, as we have a perfect right to do, carrying out an act of internal administration. Seeing, how sever, that according to His Majesty's Consul-General diffi- -culties have arisen, we have, in order to show an accommodating spirit, gone out of our way to make these slight modifications, and we would feel obliged if you would communicate to him this report, which by your instructions you have called for.
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