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supposed that some two-thirds of the raw
opium imported is smuggled in the raw
state into China and that a considerable
quantity of the opium boiled by the monopo
lists is smuggled through Hongkong or
Macao into the United States.
It is clear that the supply of raw
Opium is largely in excess of the demand
for the prepared drug in Kwangchaiwan,
And
this fuct is a menace to the success of a
Government monopoly of opium in Hongkong
and may prove a source of annoyance to the
Hongkong Government through whose territory
some of the surplus supply is sure to be
snuggled to foreign countries.
These facts have already been
pointed out to the French Minister at
Peking by "r. Alston, who urged upon him
the importance of regulating the traffic
with greater regard to the requirements
of Kwangchauwan and suggested the desir-
ability of concluding an agreement on the
subject simila" to the Mucuo Agreement
of 1913.
Monsieur Conty however appeared
disinclined to take up the matter energeti-
cally with the result that up to the
present little progress has been made.
I should be glad therefore if you
would take an early opportunity of
approaching the French Government on the
subject. You should explain the reasons
on account of which His Majesty's Govern-
ment would be glad to see a stricter
supervision of the Kwangchauwan traffic,
and you should propose, as the most satis-
factory means of attaining this end, the
conclusion of an agreement between the
French Government and His Majesty's
Government similar to that already con-
cluded between Portugal and this country
for the regulation of the "acao Opium trade
For convenience of reference I enclose
herewith two copies of the 'acao Agreement.
of