E 4
18. The amount of illicit raw opium seized during the year was only 23,149 taels as compared with 68,373 taels in 1936. The seizures of Chinese raw almost doubled, 17,123 taels as compared with 9,652 taels, but those of Iranian raw shrank by almost 90%, 6,021 taels as compared with 58,711. On the other hand, 31,979 taels of prepared opium were seized as compared with 19,851 taels in 1936.
19. On the whole, these figures, coupled with the increased sales of Government opium, seem to indicate that there was a shortage of illicit opium during the year.
20. One large seizure of illicit opium is worthy of special mention. A total of 8,006 taels was found on the sea bed off Lamma Island outside Hong Kong harbour on the 14th September. In watertight containers were found 4,100 taels of Chinese raw opium, 1,200 taels of Iranian raw opium, and 2,706 taels of Kwong Chow Wan and Red Lion prepared opium. The site of the dump had been carefully buoyed.
21. Four large dumps of opium believed to be destined for local consumption were found. One of 900 taels of Chinese raw opium was found on the hillside above Deep Water Bay; another of 1,800 taels at Deep Bay; the third, found by the roadside at Aberdeen, consisted of 1,230 taels of Kwong Chow Wan prepared opium and 1,630 taels of Chinese raw opium; and the fourth, consisting of 960 taels of Iranian raw opium and 650 taels of Chinese raw opium, was found on the shore of Aplichau island.
22. Practically all the remaining seizures were found under circumstances which indicated that the opium was for export. The largest was one of 5,284 taels of Red Lion prepared opium on the S.S. Willy about to depart for Singapore.
23. The retail price of illicit prepared opium increased considerably during the year, being in the neighbourhood of $6.50 per tael for the Chinese variety; the price of raw opium more than doubled.
24. This rise in price has hastened the process of displacement of opium divans by heroin divans which has been going on slowly for some years. The opium divan which does not also provide facilities for heroin smokers is now a rarity.
V.-HEROIN.
25. During 1937 a total of 3,936,230 heroin pills, 1,829.1/10 ozs., and 200 grains of heroin, and 102 ounces of admixture containing heroin was seized.
26. No less than 93 heroin pill factories were found; arrests were made in respect of 66 of these. In two out of these 66 the pills found contained no heroin and those arrested were released, but in the remaining 64, sentences totalling 177 years and 11 ...