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to the United States of America and elsewhere. If the Monopoly could deprive the smuggler of the Hong Kong market, he would no longer have a sufficient inducement to come there and would move off somewhere else. Sir C. Clementi admitted that his scheme of low prices and increased supplies would have had to go on as long as there was any supply available in China for smuggling.
Referring to the League Commission, SIR CECIL said that it would, of course, be welcome in Hong Kong provided its purpose was not merely to criticise the Hong Kong administration, but he doubted whether it would ever be able to get at the fac as it would not be permitted to see things in China.
MR. MOUNSEY recounted the history of the events leading up to the request for the League Commission and pointed out that its purpose was to provide data for the Conference in 1929.
SIR C. CLEMENTI doubted whether it would have time to do this unless it started at least as early as the New Year, even then he doubted whether it could get an accurate appreciation of the situation.
Mr. Mounsey was asked by the Committee to endeavour to hasten the replies from foreign Governments to the inquiry whether they were prepared to join in the request for the Commission.
MR. MOUNSEY agreed that the Foreign Office do this.
SIR M. DELEVINGNE asked Sir C. Clementi whether he had ever considered a policy of total prohibition but without extending the present measures against the illegal traffic, that is to say, concentrating on the importers and larger distributors rather than attacking the petty trafficker and individual smoker.
SIR C. CLEMENTI said that such a policy would involve the Colony in expenditure for the maintenance of a preventive service, without any counterbalancing revenue. He would not be able to get such a policy accepted by the legislative council. SIR G. GRINDLE thought that a proposal of this nature would be open to criticism as hum- bug. SIR M. DELEVINGNE said that there would appear to be no more humbug in such a policy than in the existing one.
The Committee agreed that pending the visit of the Commission of Inquiry the present policy which had been adopted in Hong Kong, namely, the concentration of preventive measures on the importer and larger distributor should be continued and that it was very desirable that the Commission should be appointed and proceed to the Far East as soon as practicable. To this end the Foreign Office would endeavour to expedite the awaited replies from the Governments concerned. Home Office, 14th July, 1928.