E 8

IV.-DANGEROUS DRUGS.

1. No seizures of Dangerous Drugs were made.

2. The use of Heroin pills in divans appears to be becoming more common, and some premises were discovered where the clients were offered the choice of illicit opium or heroin pills.

Experiments were conducted in the Laboratory to ascertain whether any heroin passed over in the smoke drawn into the lungs of the smoker, but a negative result was obtained. Arrangements were made with the Medical Department for a special study to be made of any case of addiction due to the use of these pills. So far no such case has been encountered.

V.-ARMS.

Only one important seizure of arms was made, i.e. on S.S. "HAI CHING", a vessel which was fated to suffer so severely at the hands of the Bias Bay pirates, for whom probably the automatics seized were intended.

With the withdrawal of the Arms Embargo by the Great Powers it is probable that the smuggling of arms will greatly decrease. This may be expected to affect the smuggling of opium, as the sale of opium provided the funds for the purchase of arms and vice versa. Both in Hong Kong and U.S.A. the proceeds of the sale of illicit opium used to be commonly invested in the purchase of arms, the sale of these in turn at immense profits provided greatly enhanced capital for the purchase of opium. The capital in use was thus earning handsome profits all the time, and it so happened that the demand for arms was strongest just in those places from which opium was exported.

VI. TRADE STATISTICS.

Funds are provided in the 1930 Estimates for the reopening of the Statistical Branch of the Imports and Exports Department. Efforts were made to commence the collection of the statistics on January 1st, 1930, but much preliminary work was required, and the Hong Kong General Chamber of Commerce requested time to consider the whole matter and deprecated undue haste in the interests of a firm and satisfactory foundation. The exact form of the statistics was still under discussion with the Chamber at the end of the year.

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