MR. LEE HYSAN'S EVIDENCE. Mr. Lee Hysan gave evidence at the afternoon sitting. Examined

by Mr. Jenkin, witness confirmed the various particulars which had come up during the course of the proceedings.

Witness said that on the termina- tion of his monopoly on June 6th, 1927, the Government of Macao be- came responsible to the Yue Sing Company (which owned the mono- poly) for the sum of $1,800,000. This amount included the security deposited amounting to $700,000 and the rest represented opium and utensils taken over from the farm.

Mr. Lee Hysan said that it was common talk in Macao that a new company under the name of Yau Sing Co. had been formed to obtain the monopoly, and that Mr. Lu Kin But, who signed the share certifi- cates for this Company, was the adviser to the Macao Opium Ad- ministration. He also said that a certain amount of confusion had arisen as a result of this new com- pany having been formed. In fact he had received messages intended for the new company.

Coming to the letter containing the alleged libel, witness said that he understood it to mean that the new company had paid $70,000 as security and that $50,000 was paid into the Treasury as compared with the $100,000 which he had been pay- ing monthly when he held the mono- poly. The whole circumstances in connection with the opium adminis- tration, from the time his monopoly terminated, in his opinion called for an enquiry, and that was the reason why he had made the petition.

Witness said that he had no animosity against Mr. Lobo, as he was not personally known to him. The purpose of the interpolated words in brackets in his letter con- taining the alleged libel, witness said, was to enquire carefully who could be meant, as there might be several Lobos in Macao. The pur-

pose of the words in brackets was meant for the Government to make careful and guarded enquiries and also to avoid accusing the wrong person.

Witness admitted that after hav- ing sent the original petition to the Governor of Macao, he had sent out another sixteen copies to legal gen- tlemen in Macao on September 12th, 1927. These gentlemen were under retainer from the Yue Sing Co. He had also sent copies to members of the Legislative Council.

Plaintiff's Counsels had express- ed surprise as to why 16 lawyers had been retained by the Yue Sing Co. Witness produced receipts signed by them for the retainer they had received.

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They Never Agree."

Mr. Lee Hysan added that in im- portant matters, he always took the opinion of several lawyers.

His Lordship: As a matter of curiosity, do they often

agree? (Laughter.)

Mr. Lee Hysan: No, but I act on those who agree with my own opinion (laughter.) They never agree.

Continuing, withness said that two or three of the lawyers had given him their opinions in person. In two cases they had advised him to keep quiet and see how things go for a time. "" One of them had told him that people were afraid to talk of the subject in Macao. These interviews took place at the Hong Kong Hotel. One of the legal gen- tlemen, whom he interviewed at the Savoy Hotel also advised him to keep quiet.

His Lordship Here you have the unique experience of all the law- yers agreeing (laughter.)

Mr. Lee Hysan added that in sending the sixteen letters to the lawyers at Macao, he honestly had wanted their advice.

Mr. Jenkin intimated at 4 p.m. that his examination-in-chief had ended.

His Lordship: Have you any more witnesses?

Mr. Potter: No, at the present moment we shall call n:0 more witnesses.

His Lordship: I propose to sit late to-morrow in order to finisn the case. Adjourned until 10.30

a.m. to-morrow.

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