0 0 P Y.

The Honourable

The Colonial Secretary,

Present.

Hongkong, 29th. August, 1912. 12

C.

Sir,

5 OCTIC,

We have the honour to inform you that we are in

receipt of a telegraphic message from Calcutta to the effect that

by the S. S. "Clara Jebsen" 300 chests of uncertified Bengal Opium

have been shipped for Lacao. It is difficult to exaggerate the

effect of the smuggling of cheap uncertified opium from lacao into

China is having on our trade. We understand that the British

Government and the Hongkong Government have been negotiating with

the Portuguese Covernment and the Government of Lacao for some

time with the object of bringing the opium trade at Lacao within

legitimate limits but so far from any relief being experienced we

have to record the above heaviest single shipment yet made to

lacao. The price of certified for China is today Rupees 5,550

while uncertified is Rs. 1,850, the difference Rs. 3,700 (about

$2,500 besides the evasion of the duty and likin $650 altogether

83,150) is so heavy that smugglers find no difficulty in surmount-

-ing all obstacles in getting their opium into China on a whole-

-sale scale.

We have the honour to request you to telegraph this neavy shipment of 300 chests uncertified for Lacao to H. B. H.'s

Minister at Peking and to the Foreign Office. We shall be pleased

to defray the cost of the messages,

We have etc.,

David Sassoon a Co., Ld.

(Sd.) E. Shel lim,

Manager.

(Sd.) E. D. Sassoon & Co.

E

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