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suffice to state that his investigations in Singapore have con- -firmed the opinion that it should be possible to work a Govern-
-ment Monopoly successfully here, while suggesting some modifica-
-tion in details previously recommended. I have accordingly to
submit to you a detailed estimate of the additional expenditure
for the Imports and Exports Department for the year 1914. It is under this Department that the management of the Opium Monopoly
will naturally fall. You will observe that I propose that the Superintendent of Imports and Exports should be placed in Class II of the Scheme of Salaries for Cadet officers. I consider, and Mr.
Hutchison agrees, that for the present at any rate an Assistant Superintendent is not necessary. The principal Assistant will be an Analyst who will have direct charge of the opium boiling factory. As it will be necessary for this officer to do much work in the early morning it will be necessary for him to reside in the neighbourhood of the factory which is situated in the Wanchai District. I have, therefore, provided a house allowance for him.
It is not considered feasible to import prepar-
5.
-ed opium from the Straits Settlements for consumption here. In the first place the method of packing prepared opium in the Straits Settlements is in bamboo leaves; this method has never been successfully used in Hongkong, opium smokers here not knowing how to abstract all the opium out of the leaves. The method of preparation also differs and might not suit the local taste. In the second place the factory at Singapore is already working at full pressure, supplying as it does Penang, the Federated lalay States, Labuan and other places. Mr. Hutchison fully discussed the question with Mr. Baddeley at Singapore and the latter agreed that the proposal is not practicable.
I propose therefore that as far as possible the Opium Farmer's Staff of boilers should be taken over by the Government and this presents no difficulty. I also propose to take over the Farmer's appliances for boiling and to rent the premises which he uses for the purpose.
6.