-3-

42

The situation was fully described in my Secret

+

despatch of the 12th January, 1928, which I beg you

to re-read.

2.

I cannot believe that His Majesty's

Government really desires that so outrageous a state

of affairs should continue indefinitely in this

Colony. I submit, therefore, that, if I cannot be

allowed to purchase enough Persian or Chinese opium

to make effective the policy initiated by me in

September, 1927, by which the opium-smugglers were

for a time driven out of the Hong Kong market, I may

at least be allowed to reduce the present prices of

Government opium in this Colony sufficiently to

make it possible for me to avail myself of your

permission to supplement by Persian opium the

decreasing supply of Indian opium now available.

3.

Accordingly I recommend that I may be now

authorized to purchase in such instalments as local

conditions may suggest and at such times as in my

discretion seems most advantageous, between now and

the end of 1930, Bersian opium to a total quantity

of 146 chests, namely the difference between the

maximum Indian allotment of 220 chests in 1927 and

the allowances of 196 chests in 1928, 171 chests in

1929 and 147 chests in 1930. I further recommend

> the following scale of prices for sale of prepared

opium in this Colony :-

(a) Kamshan, or pure Indian, opium to be raised

from the present price of $50.00 per three-tael tin

first

+ No. 6.52836/28 [No. 2°

3

16/28 [16. 2]

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