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been fixed to duty-paid liquor issued from the shop, were found intact, in conjunction with a large consignment of dutiable liquor, on a junk recently arrived from Macao. Another spirit shop was convicted of using old labels to cover dutiable material. In all 78 convictions were obtained.
The new distillery regulations were gradually applied. As a result about 63% of the smaller and less accessible stills in the New Territories went out of business; the remainder effecting the prescribed improvements.
4.—Legislation.—Sections 59 and 86 of the Liquor Consolidation Ordinance were amended.
II. TOBACCO.
1.—Duties.—The total nett revenue collected was $1,925,113.40, an increase over 1926 of $100,000. Details are given in Table IV.
There is a notable increase in the amount of imported cigarettes, especially of lower grade, and an equivalent decrease in the amount of locally manufactured cigarettes paying duty.
2.—Licences.—The revenue collected was $15,609.64.
3.—Administration.—Contraband tobacco seized by the department is shown in Table VII. In addition, two very large seizures amounting to over 538,000 cigarettes and 22 lbs. of tobacco were effected by the Police Department. In all 26 convictions were obtained.
III. OPIUM.
The gross revenue was $3,344,370.65 as compared with $2,900,082 in 1926. Table V shows the number of taels sold. Sales of the special brand known as KAMSHAN, which is retailed in three tael tins to a limited number of registered smokers, maintained their normal level by comparison with last year. The brand was sold throughout the year.
The brand described as 'Hong Kong-Bengal' was sold as usual at $14.50 until October 3rd, when it was withdrawn, sales having sagged continuously even below the low level set by the previous year. During the currency of this brand, i.e., between January 1st and October 3rd, seizures of illicit material reached a total of 35,000 taels (16,053 raw and 18,760 prepared) or about 26% of the number of taels officially sold (133,666). What proportion of smuggled material is represented by the seizures must, of course, be left to speculation.
On October 3rd, two brands (Blue and Red label) of lower quality were substituted at the prices respectively of $8.33 and $6.66—prices related to the price of equivalent illicit grades. This was made possible by the large accumulation of confiscations, both Persian and Chinese, in the hands of the department. If a considerable quantity was sold, it is reasonable to assume that an equivalent quantity of illicit material was kept out, and if a considerable gross revenue was obtained, it is...