opy.

ONGKONG

ONFIDENTIAL_

Sir,

-

457

TOWNING STREET,

13th November, 1933.

}

I have the honour to inform you that my attention has been drawn to the very disquieting situation disclosed by the report by the Superintendent of Imports and Exports regarding the operations of an opium smuggl- ing syndicate established in HongKong which formed the enclosure to your Confidential despatch of the 16th of

August.

3. In the light of this report it is clear that the official figures of the per capita consumption of opium

in HongKong (on which such exphasis was placed in the3rd Faragraph of your Confidential despatch of the 13th of February), hear no relation to the actual rate of consumption; and that in spite of the stringency of the provisions of the Opium Ordinance and the keenness and efficiency of the preventive service, there is no really effective control of the consumption of opium in the Colony. In short, it would not appear unreasonable to conclude that the only persons who, under the existing regime, need purchase Government Chardu are (1) those who want a high grade product for which they are prepared to pay a high price, and (2) those who (as suggested in paragraph 5 of your despatch No. 178 of the 16th of May)

rather than risk detection in prefer to pay a high price

the use of the cheaper smuggled article.

3. In the light of the report of the Superintendent

of Imports and Exports, it seems to me to be difficult

GOVERNOR,

SIR R.E.STUBES, K.C.M.G.,

etc.,etc., etc.

(367578) Wt. 20112/36 Gp. 140 60,000 11-22 W & 8 Lad.

for

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