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2

conveyed overland viâ the districts of Nan-hsiung Chou and Shao-chou Fu, ostensibly destined for Kiangsi, but actually illicitly sold en route. Moreover, in some cases no sooner has the raw opium crossed the boundary than it is at once secretly boiled down and then pours back again into Kuangtung, when it is impossible to maintain any supervision over it. This is naturally most injurious to the work of suppressing opium in this province, and, consequently, it is absolutely necessary to take steps to redouble the restrictions on such traffic. At the same time, the investigation office have been instructed to withdraw their proclamation.

I have the honour to bring this report to your knowledge. I avail, &c.

(Seal of Governor-General.)

[This Document is the Property of His Britannic Majesty's Government.]

OPIUM.

CONFIDENTIAL.

[3863]

No. 1.

CO 7235

[February 1.]

SECTION 1.

MAR

Hong Kong Chamber of Commerce to Sir Edward Grey.-(Received February 1.)

(Telegraphic.) En clair.

Hong Kong, February 1, 1911.

REFERRING previous telegrams.

Viceroy Canton now arranged opium monopoly with Canton Opium Guild to come into force at once. Increase amounts to further increase of 200 dollars per chest, making present total illegal tax 480 dollars per chest. Guild guarantees 240,000 dollars per meusem. Viceroy admits tax levied cover loss abolition gambling monopoly.

Hong Kong Chamber strenuously protests against this further flagrant breach treaties; urges His Majesty's Government necessity prompt action in interests not only of British opium merchants, but also British trading prestige generally.

[1897 a-1

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