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327

6.

It seems doubtful whether any good

purpose would be served by taking up the matter with the Government of Portugal but I suggest for Your Lordship's consideration that it might be worth while to propose to that Government the cancellation of Cause IV of the Mano- -randum signed at the Foreign Office on the 17th April,1913. Even if the Portuguese Government would not agree to the deduction of the amount which the Opium Farmer is permitted to import for purposes of exportation, the fact that atten-

-tion was drawn to the matter might result in orders being given to the Go vemment of Macao to take more vigorous steps to prevent smuggling. I confess that I do not believe

that such orders would be directly efficacious but I think

that they might have an indirect effect, as the scale of

bribes paid by the farmer would doubtless have to be in-

-creased and the profits of smuggling would be pro tanto

diminished.

7.

I take this opportunity to enclose a

copy of a letter received from a Police Officer of the

Commonwealth of Australia, now in Hongkong, regarding the smuggling of Macao opium into Australia. The reference to

Bonclosure 13.

Gur

68991/19

the packing of Hongkong opium is of interest, as corroborat-

-ing the statement made in paragraph 3 of Mr. Severn's Despatch No. 308 of the 25th September. The Indo-China and Mucao farms pack in tins, whereas this Government packs in earthenware pots, sealed with paper, the contents of which

easily leak out.

ER

I have the honour to be,

My Lord,

Your Lordship's most, obedient,

humble servant,

T.E. Stutts

Governor,&c..

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