PUBLIC RECORD OFFICE
Reference :-
TTTT ། C.O. 882
5 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
Sra,
48
Enclosure in No. 24.
COLONIAL OFFICE to ALFRED WEBB, Esq., M.P.
Downing Street, April 8, 1892. In returning to you the letters from the Hong Kong, Canton, and Macao Steamboat Company, which were enclosed in your letters of 1st May last and 14th July," regarding the alleged smuggling of opium from Hong Kong to China with the connivance of the Hong Kong opium farmer, I am directed by Lord Knutsford to inform you that by two Ordinances passed last December changes have been made in the law of the Colony which it is hoped will most materially check, if not put an end to, such smuggling. 2. The principal of these amendments are to the following effect, viz. :-
(1.) Any opium found on board of any steamship bound or about to proceed to the ports of Canton or Macao, and which does not appear on the manifest of auch vessel, will, if forfeited by a magistrate, not necessarily be (as heretofore has been the case) given up to the farmer, but will be detained by the magistrate until the disposal thereof has been determined by the Governor in Council.
(2.) Restrictions are placed upon dealing in “loose opium," i.6., opium which is packed otherwise than "in a chest full of one quality of raw opium."
(3.) The removal or movement of opium is forbidden between sunset and sunrise, except in certain cases by special permission.
I am, &c.
3931.
SIR,
(No. 85.)
No. 25.
[Answered by Nos. 28 and 29.]
EDWARD FAIRFIELD.
LORD KNUTSFORD to SË WILLIAM ROBINSON.
Downing Street, April 9, 1892. I HAVE the honour to acknowledge the receipt of your Despatch of 22nd January last, forwarding a memorandum by Sir J. Russell on the subject of the opium farm, and expressing an opinion that the farming system, if properly controlled, is more likely to prevent smuggling and to diminish the evils attendant upon an undue consumption of opium than any other system which could be devised.
2. Sir J. Russell's memorandum deals mainly with the question of smuggling opium from Hong Kong into China, and tends to show that under the farming system, as at present administered, it is easier to prevent smuggling, than it would be under any other licensing system. I notice, however, that smuggling has only been prevented, or partially prevented, by a variety of ever-multiplying checks, which have been devised from the teaching of a long experience; and that even quite recently it has been found necessary to add those supplementary provisions which are contained in Ordinances 21
and 22 of 1891.
If it should hereafter be decided to abolish the opium farm and to substitute for it the issue of a limited number of licenses, I apprehend that it would be practicable to revise the existing system of checks in such a manner as to render smuggling no less difficult and unprofitable than at present.
3. Sir J. Russell observes that the direct licensing system might, if it had been kept for some years, have been best for the Colony, whence I infer that he does not consider up the objections to that system to be insuperable; while a reference to paragraph 5 of Sir G. Bowen's Despatch of 28th August 18831 shows that at that time the Governor was of opinion, that the difficulties in the way of preventing frauds on the revenue under the licensing system had been proved to be overrated.
4. But the evils of the opium traffic to which I intended to refer in my Despatch of 31st of October§ last were more particularly the evil consequent on excessive consump- tion of opium in the Colony itself; and this point is only touched upon in one paragraph of Sir J. Russell's memorandum, in which he remarks that recently "the farmer has "increased his prices, and this tends to diminish the consumption."
There appears to be no guarantee that the farmer will maintain the price at a high level, and under ordinary circumstances he would probably make a larger profit by selling at a cheaper rate and thereby increasing the consumption. On the other hand, if the sale were more directly controlled by Government, it might be practicable to ensure
† No. 23.
‡ No. 7.
{ No. 21.
• Not printed.
49
that the price was kept as high as possible by raising the duty on the preparation of opium with the distinct object not of increasing the revenue, but of reducing the con- sumption. From this point of view the raising of the price would be limited only by the danger of encouraging smuggling from Macao, and the mainland of China, as was pointed out in paragraph 3 of Sir G. Bowen's Despatch of 18th November 1884.
5. Before finally deciding whether the farming system should be maintained or not, I shall be glad to receive a further report from you in the light of the above remarks.
6. I would also ask you to consider whether the number of opium divans, or shops licensed for the smoking of opium might not be greatly restricted. Prominence was lately given to this part of the general subject in the case of India, and the system which has hitherto prevailed has been strongly opposed. Reference was also made last July in the House of Commons by Mr. S. Smith, M.P., to the excessive number of opium dens in Hong Kong and Singapore.
7. The Indian Government has now decided, after very careful consideration of the whole subject, to put an end as soon as possible to the licenses for the consumption of opium on the premises, throughout the whole of British India (see paragraph 29 of Despatch from the Government of India of 14th October last, at page 14 of the enclosed parliamentary paper [C.-6562]), and although I am aware that the conditions of Hong Kong differ in many respects from those of India, I will ask you to consider and report whether and how far it is advisable and feasible to follow the example of the Indian Government in this matter.
8. If this restrictive policy were adopted it might be desirable to amend the law, so as further to limit the quantity of prepared opium which may be sold to or possessed by any one person, with a view to preventing the establishment of unlicensed smoking dens in private houses. You will observe that a similar amendment of the law is proposed in India in connexion with the closing of the smoking shops (see paragraph 7 of the Resolution of the Government of India, dated 25th September last, page 108 of [C.— 6562]).
9. "If you are unable to advise the closing of all the smoking divans in the Colony, you should at any rate ascertain how many divans now exist, and report whether their number could not be materially reduced. At present the licensing of such places at Hong Kong as I gather, rests with the opium farmer, subject to certain conditions; and it does not appear whether those conditions include any restriction in the number of the shops. Should the farming system be continued it would seem in future desirable to keep this right of licensing divans in the hands of the Government, as is the case in the Straits Settlements.
3931.
(No. 125.)
No. 26.
I have, &c.
KNUTSFORD.
LORD KNUTSFORD to Sm C. C. SMITH. [Answered by No. 27.]
SIR,
Downing Street, April 9, 1892. WITH reference to my Despatch of 18th August last, I have the honour to transmit to you the enclosed copies of correspondence with the Governor of Hong Kong, on the subject of the opium traffic in that Colony, together with copy of a parliamentary paper [C.-6562] on the "Consumption of Opium in India."
I request you to furnish me with a report on the various questions referred to in my Despatch to the Governor of Hong Kong of this day's date, so far as they are applicable to the conditions of the Straits Settlements.
I have, &c.
KNUTSFORD.
• No. 15,
↑ No. 20,
↑ Nos. 28 and 25.
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