2
2. The average of consumption, and of exportation, of opium in Macao may be computed from the statistics relating to the previous contract (September 1903, to April 1909), which show the following table :----
Years and Months.
1903: September to December
1904 January to December
1905:
1906:
1907:
1908: 1909:
"
April
Total
Number of
Number of Balls hoiled for Exportation.
Balls boiled for Consumption.
11,063
36,770
28,487
80,680
27,114
88,290
26,363
73.620
18,509
72,740
22,455
64,820
3,046
187,037
416,720
3
-in fact it has hitherto really co-operated--in repressing the entry of illicit opium into China. If some modifications in the legislation becomes necessary in consequence of the conference at The Hague, of which the results are not yet officially known in Macao, his Excellency the governor would propose adopting all such modifications, conforming, however, to the same rules as may be followed in Hong Kong, having regard to the identical interests which the two colonies have in this matter. present contract will expire next year, it would appear best that such alterations as may be thought convenient to adopt should then be made, thus avoiding the binding clauses of the existing contract on the Macao Government.
As the term of the
His Excellency, however, suggests the expediency of securing the adoption of those modifications at all the neighbouring ports interested in the matter, for unless this is done such modifications would not be productive of useful results commensurate with the sacrifice made.
Health and fraternity.
MANUEL FERRA. DA ROCHA.
Enclosure 4 in No. 1.
In a period of sixty-eight months, the monthly average of the opium boiled for local consumption was 2,015 balls, and the monthly average of opium boiled for exporta- tion was 6,128 balls. These averages are much higher than the limits of production prescribed by the existing contract; this reduction in the limit ordered by the Portu- guese Government was one of the causes that resulted in a great falling off in the annual
rental of the contract.
3. The separation of the limits for opium intended for local consumption and for opium intended for exportation, deters the concessionnaire from applying the latter to a purpose other than for exportation to Mexico and other places, where it is legally permitted. The opium Bureau verifies the quantities exported at the time of shipment, and at the farm there remains on deposit the whole quantity of opium yielded after boiling for exportation minus the amount actually shipped.
Thus practically the concessionnaire has for disposal by smuggling, should he elect to do so, only opium destined for local consumption; and in so small a number of chests which he is permitted to boil for consumption there is certainly not a large margin for clandestine export to China. From this standpoint of view, the concessionnaire even remains in worse conditions than the Hong Kong farmer who, according to the infor- mation you have so kindly supplied me, can have recourse for local consumption, if desired, to the whole quantity (900 chests), which be is allowed to boil annually.
4. The employés of the opium bureau assist at the boiling of raw opium at the Macao Farm, and in this toanner the Government has the assurance that it is absolutely impossible for the concessionnaire to dispose of imported raw opium other than for its conversion into prepared opium.
5. The importation of raw opium for the Macao Farm has of late been made in large quantities at a time. This fact is attributed to the probibition of transhipment of uncertificated opium at Hong Kong where the market normally supplied the con- cessionnaire in Macao in small quantities, rendering therefore necessary direct importation from British India, and in the absence of shipping communication between India and Macao a special steamer had to be chartered each time for the carriage of an important shipment so as not to enhance the price of the commodity transported. Not all the opium imported is immediately consumed, and at the farin there is actually awaiting exportation a considerable deposit of prepared opium.
6. His Excellency the governor does not doubt that smuggling (not of raw opium because it is impossible) of prepared opium could have been made either by the con- cessionnaire or more probably by individuals who make purchases from him for their consumption. As you correctly say, the tempting difference in price is in itself sufficient attraction for the purpose. It should, however, be noted that within a short distance of Macao aud Hong Kong it is easy to obtain in Kon-chau-wan raw or prepared opium opium free of such restrictions as exist at the two former ports, and it is the natural supposition that the major part of smuggling emanates from that source,
His Excellency further agrees that in Macao, as is the case in Hong Kong, there are merchants who limit their trade to the import and export of certificated opium to China, but that hitherto none of them have complained that the farm in Macao acts prejudicially to their legitimate trade, being naturally of the conviction that they are unaffected by it.
7. His Excellency the governor further directs me to say that the Macao Govern- ment remains with the best intentions of co-operating with the Hong Kong Government
Colonial Secretary, Hong Kong, to Acting Secretary-General, Macao.
(Confidential.)
Sir,
Hong Kong, July 25, 1912. I AM directed to acknowledge with thanks the receipt of your letter of the 25th June on the subject of the quantity of opium which the opium farmer in Macao is allowed to handle, and to inform you that this Government learns with satisfaction that the Goverment of Macao is prepared to co-operate with this Government in preventing illicit dealing in opium.
2. The statistics supplied in your letter have been studied with interest, but I am to point out that while the figures for 1909-10 may have been abnormal to a certain extent, the statistics for the years 1903-9 cannot be appositely compared with present requirements, because in those years many markets, especially that of America, now closed to the import of opium, were then open to it.
3. The figures supplied by you show that in the years 1903-9 the average local consumption at Macao was 2,015 balls (or 40 chests) per mensem. The Chinese popula tion of Macao is estimated at 71,000, that of the colony of Hong Kong (including the new territories) is 440,000. The legitimate local consumption in this colony does not exceed 45 chests per mensem. am, therefore, to suggest that the legitimate
consumption of Macao must be far less than 40 chests per mensem.
4. Regarding the export of prepared opium, I am to remind you that the only country to which export is legitimate, owing to absence of prohibition of import, is Mexico. You will no doubt agree that in view of this fact the allowance (1,275 chests per annum) to the opium farmer at Macao for purposes of export is excessive.
5. This Government has, under instructions from the Secretary of State for the Colonies, arranged for the continuance, at the present rental, of the existing contract with the opium farmer, which would in the ordinary course expire on the 28th February next, for one year from the 1st March, 1913, on condition that not more than 540 chests per annum of opium are boiled for local consumption, and not more than 180 chests per annum for the export trade to the country which does not prohibit the import, pending the consideration of measures to give effect to The Hague Convention; and I would suggest that since the Government of Macao is anxious to assist in the common object of confining the trade in prepared opium within legitimate limits, that an arrangement on the same lines with the Macao farmer would be of great assistance and very acceptable to this Government.
6. I am to add that you are misinformed as to the absence of complaint of merchants who trade in certificated Indian opium against what is regarded as excessive importation of uncertificated opium by the opium farmer at Macao. Such complaints, on the contrary, are very frequent,
7. This Government will not fail to supply the Government of Macao in due course with copies of any fresh legislation which may be enacted to give effect to The Hague Convention.
I am,
&c.
CLAUD SEVERN.
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