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3.
With reference to paragraph 2 of your despatch
I have in the first place to explain that some alterations were made in the figures given in Sir Henry May's despatch No. 304 of 19th. of last August before the final estimates were laid before
Council:-
(a).
It was found that certain clerks and revenue officers originally estimated for 12 months would only be required for 10 or 11 months. These changes make a reduction in personal
emoluments of $1,153.
(b).
The items "fittings, etc. head office" and
"fittings laboratory" are now included in Public Works Extraordina
-ry.
(c).
The item purchase of opium dross is included
in purchase of opium.
4.
I enclose an estimate made for the Imports and
Exports Department before it was decided to establish a Govern- -ment Opium Monopoly and a detailed statement of the actual
increase in expenditure necessitated by the establishment of an opium monopoly. The increase shown in (2) is for work which is at present performed by the Opium Farmer and which must have been taken into account by him when he tendered for the Farm; it would of course be impossible to carry on an opium farm or monopoly without clerks, accountants, shroffs and a preventive staff. It would therefore appear that the expenditure on these items may properly be regarded as part of the cost of production of prepared opium. I attach an extract from the Report for 1912 on the working of the Singapore Government Monopoly showing an estimate of the cost of production of chandu (prepared opium) per tael. It will be seen that Administration, Management and Preventive Charges are all included in the Cost of Production, and accordingly exempted
from Military Contribution.
5.
I regret to find that the note (2) on page
119 of the Estimates does not contain an intimation that the deduction for working expenses is under consideration as requested!
in your telegram of the 11th. Cctober. It was inserted in the