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and as to the effect of my action. For instance,

in your telegram of the 15th October, 1927, you

1927

speak of "the inflated demands created by this

experiment" in contrast to the "normal demands".

It is, of course, sholly incorrect to apply to the

local demand for opius at the prices recently

fixed in Hong Kong the description "inflated",

and it is equally incorrect to apply to the local

demand for opium at the price fixed for Indian

opium in 1918 the description "normal". The

true position will perhaps be clearer if for

opium is substituted some common Europeanı

commodity, say, tobacco. At the present tims

"Capstan" Navy Cut holds the field on the local

market. The competition of Kesers. Players

would, I suggest, clearly not induce anyone to

soke an appreciably larger amount of tobacco,

although it might induce some to transfer their

custor. And if Messrs. Flayers were given the

legal right in Hong Kong to imprison, fine and

banish all who smoked "Capstan" and to seize all

"Capstan" tobacco they found, the probable effect

would be the elimination of "Capstan" tobacco

from the market in much the same manner as my

recent action eliminated smugglers of opium from

the Hong Kong market.

fine,

18. The term "normal", as used in your

telegram, is similarly misleading; for, if sales

of Government opium continue to diminish at the

rate at which they were diminishing before I took

7: No. 6. 30 236 / 27 [NO?

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action,

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