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The accomplishment of home legislation such as you propose appeals to us as the most effective measure you can bring to bear to stop shipment from England. If you are able to bring in really effective legislation, and we appreciate your difficultics, we shall probably see operations diverted to Egypt and India, a considerable clandestine traffic already existing between Calcutta and this by Indo-China steamers whose crews are recruited by Wang Kee, the Indra man, Stringent legislation should be the most productive of good, for as we indicated in our cable, if we break up the Ming and Lou gang it simply means another similar one coming into existance stimulated by the powerful and wealthy purchasing organisations who appear to be outside the reach of either the Hong Kong Government or the effective Chinese Authorities. These people do not appear to take any pecuniary interest in operations until the stuff has left the ships in the East, and then they pay so heavily that the procuring rings can afford to run the risk of such losses as the recent capture of more than a ton of the "Alcinous." Wo understand that the nominal Opium suppression Bureau at Canton is one of the purchasing rings. This Bureau bought up the Opium stock in Hong Kong a little time ago with the soi-disant object of curing Opium smokers in the district by dis- tributing the Opium in conjunction with an anti-opium specific, and the expectation was expressed that this would be effected in two years with the Opium purchased. As you are doubtless aware, the Opium smoker cannot break off the habit suddenly, for that involves serious illness, so the pronouncement was plausible, but what has developed appears to be practically an official monopoly in Canton in which the military governor is a shareholder. He is the most powerful man in Canton, an individual whom Yuen at Peking considers expedient to retain as an adherent to his party. Besides this ring of purchasers, we believe, as already suggested, there are other monied interests inside and outside of Hong Kong maintaining the clandestine traffic, and the Government are unable to reach them. As an indication of the Government's difficulties in this connection, we have no official reply to the letter written on 1st November last, of which we sent you a copy. Mr. Hutchinson has spoken to us verbally about it, told us the Governor has seen our letter, and intimated that he hardly knows how to reply on account of the general difficulties of the situation.
The last part of our message referring to the advisability of safeguarding the maintenance of efficient crews was added to our message as much to let you know that we appreciated this aspect of the problem as to sound the warning note which seems warranted in view of the involved nature of relations between compradores of boarding houses, and the possible existence of a Guild as mentioned by Singapore. On the whole, we believe the crews recruited by Jack have been generally satisfactory and efficient in their proper duties, and in some instances, such as in the "Pingsucy" submarine incident, have behaved excellently. There may be just as good men available through other sources, and we may be able to get the same men through other compradores. On the other hand, these men are not unusually tied to their customary boarding quarters financially and by clannish rules, and any changes wo make may, in the first instance, have to be gradual along the tentative lines we are at present following, and the possibilities of boycott, however remote, should not be lost sight of
Yours faithfully,
(Signed) BUTTERFIELD & SWIRE.
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