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14

consumed is Government opium. Here again however real reform would lay the Government open to attack and mis- representation.

These supplies of illicit opium also render impossible the policy of recovering dross, for while the dress of monopoly opium can be identified the testing of mumerous ame]] amounts is impracticable, and the admixture of the dross of illicit opium must often escape detection; so that the purchase of dress by Government in reality provides a subsidy to the dealers in illicit opium, and for this reason has recently been abandoned.

While the production of opium in China continues

on anything like the present scale any attempt in Hongkong to register anskere and limit supplies and to prevent unregistered persons from smoking would clearly be futile. 13. 131 countries interested in opium reform are agreed as to the evils inseparable from the farming system. This system is however still in ferce in Sarawak; and it

would probably be advisable that a direct Government

Mensedly should be established there before the matter

sttracts public attention. The answer furnished by British North Borneo to the League of Nations questionnaire of last your would lend one to suppose that the farming system had

been abol inked there, as the reply to the request for the mamos of the factories for prepared opium is "Excise

Department, Sandakan, British Herth Borneo". I am however

sreditiy informed that the farming system is still employed,

at any rate on the Bendakan seaboard; and if this is true

the maggestion regarding Sarawak would apply equally to

British North Borneo.

There is also said to be a flourishing trade in

opium dross between the Sandakan coast and the Philippines in which the American revenue boats manned by Filipinos

participate.

14. At the Conference itself the question of opium

Tas

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