2
anything like the quantity to which he was limited. The tenderers had nothing to rely on. The price of raw opium had gone up considerably. In April, 1909, the price of Patna opium was 945 dollars. In July, 1910, the price was 2,125 dollars per chest. The only certain market was the local one, which could not exceed 130 chests per annum. There was also the Mexican market, but at that time Macao had no connection with it. The price tendered for the farm must be taken as fairly reasonable.
6. During the period of this farm, 1910-1913, the situation changed very completely. In the first place the Mexican market developed considerably, possibly some of the imports being destined for the American market. A considerable trade also sprung up from organised smuggling into American and Manila ports. Both these items widened the market for the Macao farm. A far greater effect was produced by the distinction between certified and uncertified opium after the agreement of 1911. The price of certified opium went up and that of uncertified opium dropped to half the value of the certified. The Macao farmer could, therefore, prepare opium at half the price at which it could be prepared in China. He could, therefore, raise his price considerably and his market widened owing to the natural development of smuggling from Macao into China. From the 1st July, 1911, to the 30th June, 1912, 1,364 chests were imported into Macao for boiling purposes. From the 1st July, 1912, to the 30th June, 1913, 1,181 chests were imported for the same purpose. It is generally estimated that the farmer made 3,000 per cent on his venture.
rate.
7. The present farm, therefore, count on being able to sell the full number of chests, to be able to sell at a high price, and to purchase their raw opium at a low The following is a rough estimate of the Macao farm on the assumption that prepared opium for local consumption is sold at 5 dol. 50 c. per tael, and that for export it is sold at 3 dol. 20 c. per tael. These prices are rather below the prices ruling at present.
Sale of 280,800 taels at :--
5 dol. 50 c. (260 chests)
Sale of 259,200 taels at:-
Dollars. 1,544,400
This Document is the Property of His Britannic Majesty's Government.]
OPIUM.
CONFIDENTIAL.
[18326]
(No. 76.) Sir,
No. 1.
[April 27.]
SECTION 1.
Sir M. de Bunsen to Sir Edward Grey.-(Received April 27.)
Vienna, April 24, 1914. WITH reference to the last paragraph of my despatch No. 67 of the 10th instant, I have the honour to report that I have now received a reply from Count Berchtold, informing me that he has submitted to the Austrian and Hungarian Governments the suggestion of His Majesty's Government that they should declare in writing their intention of signing the Opiuta Convention, and assuring me that I shall at once be informed when a decision has been reached.
I have, &c.
MAURICE DE BUNSEN.
[2103 dd-1]
8 dol. 20 c. (940 chests)
Total sales
829,440
2,373,840
Cost of 500 chests raw opium at :→→
2,110 reis with charges..
Dollars.
724,080
Rent to Government
Working expenses
Total expenses
This leaves an annual profit of 450,000 dollars to the farmer.
1,056,666
144,000
1,924,746
The above estimate is only a rough one, and takes no account of possible changes.
8. It is worth noting that in 1911 and 1912 the Hong Kong farmer boiled the whole of his allowance of 900 chests. He offered the same rent for 1913, 1,183,200 dollars, on a reduced allowance of 540 for local consumption and 120 for export, and very much stricter conditions. His export in 1911 and 1912 was very
mall.
R. O. HUTCHISON, Superintendent, Imports and Exports.
535
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