:

460

detection and prosecution of the capitalists who finance

the actual smugglers.

9. The operatiors of various individuals and firms

domiciled in Hong Kong who carry on an illicit trade of enormous dimensions throughout the Far East, have been the subject of considerable correspondence between us; but from

Mr.Lloyd's report it would appear that there are many

wealthy persons interested in smuggling opium into Hong Kong itself. It is, in my view, equally important that no efforts to book the principals domiciled in HongKong who operate both should be spared to bring/within and outside the Colony.

I see little hope of suppressing the trade except by making

it so hazardous that these wealthy individuals and firms will

hesitate to be concerned in it.

10.

It was for this purpose that, in my despatch

No.130 of the 9th June, I suggested that you should enact legislation on the lines of the Dangerous Drugs and Poisons (Amendment) Act, 1923. I have now received your despatch

No. 323 submitting an Ordinance dealing with Dangerous Drugs, and I observe from the attorney General's report that similar prvisions relating to orium are being included in the amend- ing and consolidating opium Ordinance. I consider that there; should be no avoidable delay in passing this Ordinance and the Eritish Representative on the League of Nations Advisory Committee urges that you should then not hesitate to make full use of the powers which you will have, so far as it is possible to do so without grave political consequences, the

danger of which I recognise.

11.

In conclusion, I desire to place on record my appreciation of the keenness and efficiency of the Preventive Staff, to which I have several times referred in this despatch I au informed that the co-operation between your Government and the Home Authorities has been very fruitful and is much appreciated by His Majesty's Government,

I have, etc.,

(sd.) DEVONSHIRE.

34) (387578) WVL, 20112/38 Gp. 140 60,000 11-22 W & S LAL

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