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broadly that for this privilege the new company had paid

bribes amounting to $120,000 to the Treasurer of Macao and to

the Governor's wife.

4.

I was able to inform Senhor Barbosa that reports had reached me early in July regarding the brands which a company of the identical name, having headquarters in Macao, proposed to place upon the market and that samples of seizures made recently in Hong Kong by the Superintendent of Imports and Exports could be placed at his disposal. I added that my information differed from that given in the petition mainly

in so far as it substituted for a bribe of $120,000 to certain

individuals an annual fee of ten times that amount payable

to the Macao Government.

5.

I am not aware what steps Senhor Barbosa has taken, but from enquiry made of the Consul-General for Portugal it does not appear that legal proceedings against Lei Hy San

are contemplated.

6.

It is difficult to ascertain the real truth,

though I am convinced of Senhor Barbosa's personal good faith, of which the best evidence is perhaps that he finds himself

attacked by Lei Hy San.

Of the existence of a powerful private syndicate

operating in Macao for the express purpose of maintaining the export brands of superior prepared opium for which that Colony has acquired a reputation, I have no doubt at all. I imagine it was on behalf of this syndicate that the Japanese steamship "Kairya (or Kairio) Maru" recently put in to lacao harbour. Coincidentally with her arrival on 22nd October for the ostensible purpose of discharging an insubordinate crew, the

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