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SARA

-CONFIDENTIAL.

Sir,

copy

C

26118

26 JAY 1

GOVERNMENT HOUSE.

HONGKONG. 29th March, 1921.

307

I have the honour to acknowledge the receipt

of your despatches dated 4th and 7th February on the subject

I note with of the importation of raw opium to Macao. satisfaction the efforts which are being made to restrict these imports to what may be considered the legitimate demands of that Colony itself; and also the attempts which are being made to bring the Governments of France, Portugal and Japan into line with those Administrations which obtain their opium by direct purchase from the Government of India.

2. With reference to the note from the Portuguese Minister for Foreign Affairs dated 5th January, 192), which accompanied the second of your despatches under acknowledg- ment, I would point out that of the 1290 chests (less 374 to Macao) imported into Hongkong during 1919, only 377 chests were boiled locally. The figure which he quotes is therefore highly misleading, including as it does the very large consignments which were merely transhipped in this Colony.

As I have recently had information of an irregular shipment direct from Calcutta to Macao of 150 chests of opium which, if true, would bring the annual total in excess of the 500 cheste allowed by the 1913 Agreement,

THE RIGHT HONOURABLE

WINSTON CHURCHILL, M.P.,

&c..

&c.,

&C.

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