1. The gross revenue
E 2
from the Opium Monopoly was $4,765,028.59 including the amount derived from fines and forfeitures.
5. Excellent work was again done by the Preventive Staff during the year. But in spite of the enormous seizures made there seems to be no decrease in the traffic in smuggled opium through the Colony for the reasons given in my report last year. Table IX shows the number of seizures made and the amount of opium confiscated.
IMPORTS AND EXPORTS OF RAW OPIUM.
6. Tables IV to VI show the details of the import and export of raw opium. The absorption by China of the stocks of certified opium held in Hongkong and Shanghai continued slowly, and certain movements of opium took place between the two places. On 1st October an agreement was come to between the Commissioner for the suppression of opium for the Province of Kwang Tung and the opium merchants of Hongkong for the purchase of all the stock of certified opium held in Hongkong amounting to 1,200 chests. Delivery is to be taken of the whole of this stock within 18 months from the date of the agreement. Persian opium continued to be imported into the Colony practically entirely for Formosa. The import of Uncertified Indian opium is limited to the Government and the Macao Opium Farmer.
SUGAR.
7. Tables VII and VIII show the details of the import of sugar for the year.
MILITARY STORES EXPORTATION ORDINANCE.
8. A great deal of work has been thrown on the department over the Military Stores Exportation Ordinance and other legislation in this connection occasioned by the war. Hongkong has always been known as a free port and though certain regulations have been in existence dealing with sugar, opium, and intoxicating liquors, there has never been any control over the general movement of cargo through the port and there is no customs organisation. The various proclamations issued under the Military Stores Exportation Ordinance made it necessary to have a system under which it is possible to control the movement of cargo entering or leaving the Colony.
A considerable amount of detail had to be gone into, but the three main points that occupied the attention of the department were :--
(a) to control the movement of prohibited goods,
(b) to prevent trading with the enemy,
(c) to avoid hampering genuine trade.
The system adopted was in the main simple. Prohibited goods could not be exported except under a permit. All ships and junks leaving the Colony had to furnish the department with a full and complete manifest. Manifests were checked against permits, and