MINUTES.

MINUTES NOT TO BE WRITTEN ON THIS SIDE.

1

+ CONFIDENTIAL,

39732

ROJ 2

Sopy

GOVERNMENT HOUSE,

HONGKONG. 17th May, 1921.

506

Sir,

I have the honour to acknowledge the receipt of your despatch No.57 of 21st February on the subject of the importation

Goy

5652

26118

Loures 2

to b

of opium to Macao.

2. In my confidential despatch of the 29th of March I have already dealt with most of the points now raised, but it may be convenient if I enclose copies of the last three annual reports of the Imports and Exports Department, in the Appendices to which will be found in detail the numbers of chests of row opium forvarded to Macao and elsewhere.

3. As reprds the irregular shipment mentioned in the third and fourth paragraphs of my previous despatch I enclose copies of further correspondence with the Government of India and

Maceo.

4.

There have been no similer inatences of importation of raw opium into Macao by private dealers other than the farmer

during the last six years, end while it may be as legal as is the large trenshipment business of raw opium in this Colony, the transaction is undoubtedly highly suspicious, es acao has

practically no legitimate transhipment business or facilities

for such, and as the destination, Chile, is almost certainly a

merely naminal destination. Previous experience of the Macao farmer's methods has shown thet such opium is often used locally, while bogus shipments are made to Chile in order that the amount

exported may on paper balance with the amount imported, and there

is

THE RIGHT HONOURABLE

20.,

WINSTON CHURCHILL, M.P.,

&c.,

BLC.

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