NA- CONFIDENTIAL.

sir.

C.O.

950

RECE

Reat

7

JAN 16

4Cace

GOVERNMENT HOUSE,

HONGKONG. 30th. November, 1915.

363

4X4

I have the honour to transmit the enclosed

Memorandum drawn up at my request by the Superintendent of Imports and Exports on the subject of the operations of a Syndicate which has been formed to establish an Opium Lonopoly in the Kwangtung

Province, together with a copy of an agreement made between Tsai Nai-huang delegated from Peking in connection with what is termed the prohibition of the sale of native opium in Kwangtung and cer- -tain raw opium merchants in this Colony.

2.

Nothing very definite has been done as yet in furtherance of the Monopoly bus negotiations for the purchase of uncertified opium are widespread. An increase in smuggling from Europe to China is to be anticipated, and apart from the nuisance caused in this Port by such traffic there is the danger to the Colony that if the Syndicate forming the lionopoly, or some of its sub-companies, can get a sufficient supply of opium it would pay to "dump" prepared opium here.

3.

I have sent a copy of this Despatch to His

Majesty's Minister at Peking and to His Majesty's Consul-General at

Canton.

I have the honour to be, Six.

Your most obedient,

humble servat,

Governor,&c..

HE HIGHT HONOURABLE

ANDREW BOLAR LAW, M.P.,

800..

MO...

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