PUBLIC RECORD OFFICE
Reference :-
PEC.O. 882
5 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
2. For 1883-4 only one offer was received, viz., $150,000 a year, but this was from--a man known to be on the verge of insolvency, to whom the farm could not have been entrusted.
3. The present occasion of calling for tenders has also elicited only one offer, $156,000 a year, increased by subsequent negotiation to $159,000. This offer is from the Yan Wo Company, one of the only two large firms likely to make any valid offer for the farm. It is this company which holds the monopoly of opium boiling at Macao. Endeavours were made to obtain an offer from the rival company (the Tsap Shing) but without success. The offer of the Yan Wo Company has therefore been accepted, on the understanding that that company will continue its export business as usual until March the 1st, when its monopoly will commence.
4. $159,000 may seem a small sum in comparison with what the farm was sold for in 1879, viz., $205,000 a year for three years. The present sale is for one year only. But experience has shown that the amount to which the price of the farm was forced up in 1879 was too high, and the consequences have been disastrous to the purchasers and unfortunate to the Government. The Chinese Association which entered into that unlucky contract has ever since been, and is now, involved in a ruinous litigation, which I believe is the one solid result of its enterprise, whilst the Government has come perilously near to losing its revenue on exported opium altogether, and has actually lost the undivided possession of the trade which it used to enjoy.
5. Had the export trade to California and Australia been on the increase, it is quite possible that the revenue might have overtaken the artificial stimulus given to it in 1879, and even have exceeded the large amount I have quoted. But, from a variety of causes already reported on, the export of prepared opium shows a tendency to decline. The establishment of an opium boiling establishment in San Francisco is probably only a question of time, and its success would annihilate at one blow more than half of the Hong Kong export business. The lowering of our rates on exported opium adopted in July last (see printed papers p. 48, par. 11) has been entirely successful in stopping the direct shipment of prepared opium from Macao, which no longer pays, but of course we cannot reduce our rates and also make a high revenue.
6. During the 12 months ending February 29th, 1884, the Government, issuing licenses direct, without the intervention of a monopolist, was fortunate enough, owing to adventitious causes, to secure as nett revenue, $222,725.
During the 12 months ending with February next the nett revenue will almost certainly not exceed $111,000.
Total of the two years Average per annum
333,725 166,862
These figures show that the mean revenue secured by the Government during the last two years exceeds the present offer of the Yan Wo Company by only about $8,000 a year. As, of course, a trading company will not undertake such a venture without some prospect of profit, the offer of the Yan Wo Company seems as liberal as could reasonably be expected.
7. An estimate made by the Superintendent of Opium Revenue of what the Govern- ment might expect to make during the 12 months ending February 28th 1886, amounted to $150,000 nett. I am inclined to think this is too sanguine, and that $140,000 at the outside would be nearer. Of course it may be said the Yan Wo Company would not offer $159,000 if there were not profit to be made. Their offer, however, is certain: the profit is contingent. My only doubt in the matter is as to again putting the monopoly of the trade into the hands of the ring whose object has been for years, and of course will be again, to minimise the Government's share of the profits. But on this point the Secretary of State's instructions seem to be explicit.
Hong Kong, December 22, 1884.
A. LISTER,
Treasurer.
MEMORANDUM by the COLONIAL SECRETARY and AUDItor-General (Hon. W. H. MARSH). I QUITE concur in this report. It may be interesting to add, with the view of showing how small a portion of the opium usually prepared in Hong Kong is for local
19
consumption, the actual quantities boiled and exported during the 12 months ending 28th February, 1884, viz.,~
year.
Exported to California
Australia
other places
"
"
Sold for local consumption
Total
*
Taels. 1,387,574
444,456
57,743
601,843
2,491,616
During the first nine months of the year commencing 1st March last the quantity sold for local consumption has been 488,592 taels, or at the same rate as for the previous
The quantities exported to "Australia'
and to
"other places" also show no falling off.
It is in the exports to California that the very great reduction is to be seen, the total for the nine months ending 30th November last, being only 105,484 taels, or s of the exports in the previous year, which were nearly all shipped before the end of June in order to arrive before the extra duty that had been decided on, came into force.
In consequence of the acceptance of this offer, the opium establishment shown at page 14 of this year's estimates, will disappear after the 28th February next, and a reduction of $6,900 will thus be effected in the expenditure.
December 22, 1884.
1873.
(No. 27.)
SIR,
No. 18.
W. H. MARSH.
The EARL OF DERBY to SIR G. F. BOWEN.
Downing Street, February 7, 1885.
I HAVE the honour to acknowledge the receipt of your Despatch of the 26th of December last, and to approve the acceptance of the offer of $159,000 for the lease of the opium farm for the ensuing year.
14670.
No. 19.
I have, &c.
DERBY.
SIR C. C. SMITH to LORD KNUTSFORD. (Received July 21, 1891.) [Answered by No. 20.]
Government House, Singapore,
June 23, 1891.
(No. 264.) MY LORD,
I HAVE the honour to report what has been done regarding the Singapore and Penang Opium and Spirit Farms to meet the difficulties into which they had fallen.
2. In Singapore the farm has been re-let to the old farmers at a reduction of $20,000 a month, not only for this year, which is an unexpired portion of the old contract, but for a further period of three years from the 1st January 1892.
The payment of the balance due to Government, namely $54,000 in respect of the year 1890, is allowed to remain in abeyance."
The Johore farm, which is held by the same Singapore traders, has been similarly extended for a like period.
I enclose copy of a report made by Mr. Knight and Mr. Hare (the Assistant Auditor General and Acting Protector of Chinese respectively), whom I bad directed to examine the books of the farm in order to ascertain whether the statement they had made to the Government regarding their losses was correct.
I annex, also, copy of a Minutet by the Colonial Secretary and an extract+ from the minutes of the Executive Council.
• No. 17.
↑ Not printed.
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