i.
Pas.
436
countries which do not prohibit the import of opium. At
present the Farner can use 900 chests per annum for all
purposes.
3.
As regarda prepared opium the now Ordinance
limits to 5 taels the amount of the drug which may be sold
at one time, or which any person, other than the Opiumm
Parmer or his licensees, may have in his possession; and
increases largely the penalty for breaches of the sections
defaing with the import and export of morphine and com-
pounds of opium. It provides that prepared opium seized
with regard to which any breach of sections 35(7), (8),
(9), 36 and 37 (as amended by the Bill enclosed herein)
and sections 76 and 77 of the Principal Ordinance (copy of
which is enclosed for convonience of raforence) shall be
forfeited to the Crown.
4.
It increases the penalty for concealing
opim in any ship from a meximum fine of $500 to a maximum
fine of $2,000 or, at the discretion of the Magistrate, to
imprisonment for a period not exceeding 12 months. And it
makes importent amendments in sections 76(2), 77 and 78 of
the Principal Ordinance.
5.
It is anticipated that these alterations in
the law and in the conditions of the Opium Farmer's con-
traat will result in a great diminution in smuggling of
opium from Hongkeng sources. They aim at limiting the
supply to legitimate requirements and this must, in the
case of a valuable and easily concealed article like opium,
be the surest method of prevention. This consideration
loads me to point out that prepared opium can be obtained
in Macao and Kwong-chow-wan within easy reach of Hongkong
and that until the supply in those places is limited to
legitimate local requirements so long is the smuggling of
prepared