opy.

rom British Consular Agent, Koepang. To H.B.L.Consul General,

3.9/1.

sir,

KOEPANG,

Batavia.

10th April, 1919.

371

With reference to your letter dated 17th ultimo, with enclosed copy of a letter from His Excellency the Governor of Hongkong dealing with the manufacture and exportation of perpared opium in Fortuguese Timor.

I have the honour to inform you, that the question

for the manufacture of opium first began to receive the attention of the Portuguese Authorities in Timor in 1914, through a Chinese Syndicate at Hongkong operating under the name of Leong Kwong, who claimed the right to boil opium by a decree dated 28th October 1914, whether this

decree was published I am unable to say. But after much correspondence with the Portuguese Authorities at Timor, the monopoly wes granted for the manfacture of raw opium to Leong Kwong, and published in Bulettin Official Timor 16th December 1916, but I believe nothing was stated in this notice or in the contract entered into between the

Fortuguese Authorities and Leong Kwong as to whether the

British Government would allow the export of raw opium

into Portuguese Timor, Leong Kwong ignoring this fact

immediately proceeded to erect a factory at Dilly, Timor for the manufacture of opium and some 500 chests of raw opium was purchased at Calcutta and the first consignment of some 50 chests were seized by the Authorities at Singa-

pore en route for Timor stating that the quantity was

exceed of Timor requirements. A contretemps then arose

with the Portuguese Government, with a resultant loss to the Company of Leong Kwong of some 350,000 Dollars.

The/

i

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