E 2
3. The gross revenue derived from the sale of opium was $5,811,110.15 as compared with $4,765,028.59 in 1915. The price of prepared opium was raised twice during the year: on February 5th it was raised to $11.50 per tael and again on April 20th to $12.00 per tael.
4. A large number of seizures were again made during the year, but as will be seen from Table IV the amount of the seizures of raw opium shows a large reduction as compared with the figures for 1915. This reduction would appear to be largely due to steps taken in the United Kingdom to prevent the export of raw opium. There is a slight increase in the seizures of prepared opium. As I have mentioned in previous reports the traffic in smuggled opium is a traffic through the Colony and can only be satisfactorily dealt with at the various sources of supply.
IMPORTS AND EXPORTS OF RAW OPIUM.
5. Tables V to VII show the details of the import and export of raw opium. An agreement was made in October, 1915, under which the Commissioner for the suppression of opium for the province of Kwang Tung undertook to purchase the remaining stock of certified opium held in Hongkong from the opium merchants of Hongkong. The disturbances in the Kwang Tung province appear to have interfered with the carrying out of this agreement and after the first two months of the year the export of opium to the Kwang Tung province practically ceased.
10.
The total amount of certified opium imported into the Kwang Tung province during the year only amounted to 83 chests. 180 chests were exported to Shanghai. Persian opium continued to be imported into the Colony, practically the whole imports going forward to Formosa. Uncertified opium was imported for the Government Monopoly and the Macao Opium Farmer. One lot of 170 chests uncertified opium which was being shipped nominally for Mexico was returned to Calcutta owing to the suspicious nature of the shipment.
Sugar.
6. Tables VIII and IX show the details of the import of sugar for the year. The fee for certificates of origin under the Sugar Convention Ordinance was reduced from $5.00 to $2.00 to bring them into line with the various other certificates now issued by the department.
TOBACCO.
7. On July 7th an Ordinance was introduced imposing a duty on all tobacco consumed in the Colony, and the collection of this duty was undertaken by this department. The procedure introduced was similar to that already in operation in regard to intoxicating liquors, with the exception that duty was charged on stocks of