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during the year on Hongkong subsidiary coin varied between 4% and 71%, and on Chinese subsidiary coin 41% and 8%. Hongkong copper cents were from 105 to 120 per $1, and Chinese copper cents from 112 to 123 per $1. Negotiations continued without success between this Government and the Chinese Authorities with a view to decreasing the excess of Chinese subsidiary coin.
In pursuance of the policy of H.M.'s Government, 26 opium divans were closed on the 1st March, 1909, and compensation amounting to $11,613 was paid to the divan-keepers. All remaining divan-keepers both in the Colony and the New Territories were notified that no licences would be renewed after the 28th February, 1910. The opium laws of the Colony were consolidated in September last and were amended so as to give full effect to the recommendations made by the International Opium Conference, which sat at Shanghai during February, 1909, and to the policy of H.M.'s Government. Tenders for the lease of a new Opium Farm for 3 years from the 1st March, 1910, were called for, and the lease was granted to Messrs. Ho Kom-tong, Ng Li-ling, Lau Chü-pak and Ch'an K'ai-meng, at an annual rental of $1,183,200. This means a loss to the revenue of $225,860 during 1910 and of $270,660 during each of the years 1911 and 1912.
The restrictions on the consumption of opium both inside and outside the Colony are as follow:-
(1.) The smoking of opium is restricted in Hongkong primarily by the existence of a Monopoly under which the sole right of preparing opium for smoking and of selling the prepared drug is vested in a Monopolist who is thus enabled to charge a very high price for the drug. The selling price of prepared opium and dross opium is $4.50 and $2.00 respectively per Chinese ounce (1 oz.). The Monopolist alone can import prepared opium.
(2.) Opium Divans (or opium dens as they are called by some) have been closed, as explained in the preceding paragraph. Heavy penalties are imposed for the illicit opening of a divan. Persons found smoking in a divan are liable to fine and persons found in, or escaping from, a divan are under the law presumed to have been smoking therein.
(3.) Penalties are imposed on any person who administers any injection or furnishes morphine to any other person except under prescription from a qualified medical practitioner.
(4.) The importation for sale or use within the Colony, the preparation, manufacture and sale of morphine and compounds of opium are restricted by licence.
Licences are restricted to a few Chemists and Druggists of good repute who have to pay a royalty to the Monopolist referred to in (1) of Ten Dollars per tael of morphine and Four Dollars per tael of compound of opium other than morphine. The price is thereby