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to 660 chests. Under the lease just expired he was allowed 900 chests per annum. Of the 660 chests 540 are for local consumption and 120 chests for export. It is calculated that the amount allow- -ed for local consumption is legitimately required. No export will be permitted except on production of permits for importation by the Government of the country of destination.

(3).

The sale of medicinal opium, of morphine, of

any alkaloid or constituent of opium, of coca, cocaine, and all its derivatives, and of the preparations of any strength of the above mentioned substances, has been so drastically regulated as to prevent, as much as is possible, any abuse and ill-effect arising from the administration of these drugs.

The sale of Heroin and other derivatives of morphine or cocaine is restricted as a poison under the Pharmacy Ordinance. No necessity has yet arisen to legislate specially for these poisons, but the matter is engaging attention.

(4).

A system of very large rewards has been

established for seizures or information leading to seizures of opium, morphine, etc., which is being handled in an illegal Banner for purposes of smuggling.

(5).

The definition of opium divan is widened in the Ordinance referred to above with a view to strengthening the hands of the Police in dealing with the opening of such Divans, which since the 1st. of Merch, 1910, has been illegal.

(6).

The use of prepared opium is further dis-

-couraged by the advance in price for which it is sold under the

Monopoly system. The price is now $5.50 a tael for prepared opium and $250 a tael for dross opium.

(7).

With a view to possible improvement in the

control of the purchase of prepared opium, this Government has under consideration a scheme for taking the opium monopoly into

its

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