-

8.

118

motor vessel "Wing Hung" to ply under the British Flag in

Chinese Inland Waters.

7.

It was with great regret that I found that in this case the judgment of the Government was wrong and that in all probability Mr. Loud was not the real owner of the vessel and was simply paid to lend his name as the registered

owner.

8. While small quantities of opium are frequently

found, usually in the crew's quarters, on ships running between Wuchow and Hong Kong, there is no ground for supposing that the opium seized by the Chinese authorities at Doshing was intended for Hong Kong. It has proved impossible to obtain evidence as to where the opium came from or where it was put on board. As the ship was examined at Doshing on her journey to Wuchow, and the opium was found at Doshing on the journey from Wuchow, it is fair to assume that it was put on board at Wuchow and originated from Kwong Sai or Yunnan, and it was probably intended to be smuggled ashore at some convenient spot on the long journey down the West River from Doshing for consumption sanewhere in Kwang

Tung.

9.

I have been in communication with His Majesty's Consul-General in Canton regarding any steps that might be taken for dealing with and punishing the persons now in the Colony for illicitly trafficking in opium outside

present suggest any practicable method of strengthening the law to enable this Government to deal more effectively with persons resident in Hong Kong who are accused of transport- ing opium fran one part of China to another.

Enclosures 4 and attach copies of the correspondence. I cannot at

10.

Chinese characters for names in this

despatch

Page 120Page 121

Enclosure No.9.

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