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dammatory evidence, but he would answer correctly any questions put him. After the first enquiry he was sent to Timor on promotion to keep him out of the way, but after a few months he got tired of the place and returned here. Then the case was finally shelved in the Farm's favour he was given a bonus of 8500, and was much dis- -gusted as thousands were paid to other witnesses, and the Attor- -ney General and the Opium Superintendent (Harbour Master) made
huge sums
Fernandes also stated that the allowance of 500 chests a year for Macao is insufficient to pay the Farmer on his present subsidy of over six and a half million dollars a year, so he gets quantities of opium from Kwangchouwan.
To sum up: I understand that all the shipments abroad purporting to be boiled opium have really been molasses, and therefore the drug smuggled into China must have consisted of the total Macao allowance plug importations from Kwangchouwan. In this connection I was told by a friend the other day that it is a well known fact that a Clerk in the Opium Office, drawing 8150 a month, was presented last Christmas with 840,000 for services
rendered."
Knowing all this, it will be interesting to see what kind of a case the new lonial Secretary will make for you.
It is absolutely impossible for me to prevent smuggling as the worst offenders are Chinese Government launches and men-of-war, who refuse to be examined at my stations. I have asked the Canton Officials to order them to stop for Customs inspection, and told them straight that their boats are the principal offenders, especially in the matter of rice smuggling which they are so anxious for me to prevent, but, as was to be expected, I have no reply.
use to you.
Trusting that the above information may be of
I remain etc.. (sd.) W. G. Lay.
The Hon. Mr. Fletcher,
Colonial Secretary, Hongkong,
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