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Byndicates engaged in the smuggling of drugs into the Far East, and it is clear that the business is being carried on on an enormous

<1 sol like to discuss also vit further measures can be taken to deal with people like Namazee. ithout the sport of big financiers the trade could not be carried on.

Yours sincerely,

Malcolm Delevigne

>

21156.

Matters for discussion with Sir Malcolm Delevingne.

A. The effectiveness of the HongKong Preventive Service.

The position is summed up in paragraphs

5,6,and 7 of 31940. The Governor who is thoroughly

acquainted with local conditions is definitely satisfied

that the preventive measures already adopted are as

rigorous as it is practicable or expedient to make them.

The constant seizures would appear to be sufficient

vindication of their effectiveness. As regards the

Superintendent of Imports and Exports almost plaintive

of his report in 47043 remark at the beginning of paragraph 12/(that the existing

Opium Ordinance makes it very difficult to deal with

bulk imports) it should be noted that the Hong Kong

Government was asked in June to overhaul the whole of the

Opium Ordinance, so as to bring it into line with

present conditions.

B. The problem of dealing with the principals and

financiers behind the actual smigglers.

He owns

Nemazee's operations have become notorious. the great majority of the ships trading from the Persian

Gulf and he appears to supply opium to most of the countries in the Far East; and (although no doubt many of his transactions are perfectly licit) it seems to be

certain that he is carrying on an enormous illicit

traffic.

Until the receipt of the report which forms the enclosure to 47043, I had not seen any suggestion that

he was concerned in smuggling opium into Hongkong. This

however also appears now to be the case. Though it will be observed that he himself was careful not to operate

within

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