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in the trade as the "Pillow" brand, i.e. in large lumps. It was mostly packed in kerosene tins containing exactly 400 taels net, some was packed in small tins of the size of small biscuit tins. The ship was a very small one, and though it could not definitely be proved who was responsible for having the hiding place constructed or the cargo specially stowed, there is no doubt that the executive officers, who were all Chinese, must have been cognisant of the fact. The chief Engineer and some of the engine-room crew and the Tallymen absented themselves; this is not conclusive however, their absence may have been for the purpose of diverting suspicion from persons higher up. It is believed however that persons connected with the owners received freight on such consignments, as has been proved to be the case in many former cases, the charge made being from 12 to 15 cents per tael. The result of this seizure was at once seen in the sale of Government opium, which suddenly increased 1,000 taels per week in the two weeks immediately following the seizure, subsequently falling again as further supplies reached the Colony. In one day the price of lower grade illicit jumped up 50 cents per tael tin.

3. Amoy.—Seizures of Amoy prepared opium were mostly made on ships bound for the South, but evidence was found that Amoy prepared opium is beginning to have a sale here. Amoy semi-prepared opium packed in 25 tael packets in grease-proof paper undoubtedly found a fair market here, and several seizures were made from time to time.

4. Kwong Tung frontier.—A considerable amount of Chinese opium, chiefly raw, finds its way into the New Territory, where little Government opium is sold, though I am informed by the District Officer that opium smoking has much increased recently, and that small divans are not uncommon, and are under influential protection in some cases. Women bring raw opium across the border, or land it from sampans along the coast, supplies of raw opium being plentiful and quite cheap just over the frontier, although there is an opium monopoly in force there.

Shanghai and Indian opium.

A seizure was made of the equivalent of three chests of Benares opium packed in two cases with camphor to suppress the smell of opium. This was shipped as cargo consigned to Shanghai, and was seized just as the ship was ready to leave. Subsequent information received pointed to the fact that this was part of a consignment of 12 chests which had been sold to Shanghai, and had been packed up on some junk in the harbour. The opium was old stock, and probably at least three years old, it was said to have come from Kwong Chow Wan. This was, I think, undoubtedly the case, as in former years I have had the opportunity of examining a large number of documents dealing with this trade in raw Indian opium imported by the Government of Kwong Chow Wan. Neither the consignors nor consignees

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