ENCLOSURE NO. 2.

Government House,

Hong Kong, 15th August, 1927.

35

Dear Senhor Barbosa,

Mr. Cerveira handed to me today Your Excellency's personal letter dated the 14th August, and at the same time informed me that the supply of Indian opium at Macao is now exhausted, and that unless a further supply can e

made available the Macao Government will be obliged to

close down the opium monopoly; that very serious consequences

to the Macao revenue would ensue; and that Your Excellency urgently desired me to send to Macao four more chests of Indian opium in order that the monopoly might continue until the end of this month, by which time it is hoped that the representations now being made by the Portuguese

Ambassador to the British Foreign Office may prove success-

ful.

I have accordingly at once given orders that four chests of Indian opium should be delivered to Your

Excellency, and I understand that the necessary arrangements have been promptly made. I have also telegraphed today to the Secretary of State for the Colonies reporting the difficulties with which Your Excellency is confronted and supporting your request for an annual supply of 120 chests of Indian opium to Macao, subject to yearly reduction as

in the case of Hong Kong. I have said that in my opinion.

this amount is reasonable, and that I am convinced that

Your Excellency's Government really desires to bring the

opium trade in Macao under proper control; and that unless you can secure Indian opium legitimately Your Excellency

will be

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