HAYU JUINÍ NÁS, 2.E

304

6.

(A most important omission) He does not give an

estimate of Hong Kong's actual requirements; clearly intending the despatch to be read in conjunction with previous correspondence summarised in this memorandum (and thereby necessitating the preparation of this

memorandum,)

On the other hand, the figures given in the enclosure bring out very clearly the increasing success

The detailed of the Government preventive measures.

figures of seizures (which have now been received in a separate despatch) are noteworthyfor the large number of seizures of small quantities of illicit opium; resulting

from the intensive campaign against divan s.

Also the figures of consumption which showed

a steady decline from 1918 to 1921, and a rise in 1922, support the Governor's view that more smokers are again

turning to Government chandu as a result of the

intensive preventive campaign.

Reviewing the position generally, it appears

to be reasonably well established that:-

progressive

(A) There is an increased (and possibly increasing) demand for Government chandu, due to (1) e increase in the Chinese population of the Colony, and (2) to restricted facilities for smuggling due to the increasing success of the intensive preventive measures

undertaken by the Government.

(B) That this increased demand is legitimate" and should be met by an increased supply of Government

chandu.

(c)

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