700
236
in the last few years. It is not known of course what proportion the seizures bear to the total illicit traffic, but it may be assumed that a considerable quantity escapes the preventive service. Opium, which can be transported in very small quantities and very easily hidden, is extremely easy to smuggle, and ample opportunities are afforded at the busy ports of Singapore and Penang where effective examination of all passengers, &c., is impossible. Further opportunities for landing cargoes in larger quantities are afforded by the many creeks and waterways on the coasts of Malaya. Although the Governments have taken steps to improve the efficiency of their preven- tive service, it is impossible for them to prevent smuggling altogether, so long as opium can be obtained in China as freely as at present. And while the illicit traffic continues on its present scale it would appear impossible for the Malayan Govern- ments to proceed to the next stage of their policy as stated above.
II. HONG KONG.
1. The consumption of Government opium in the last few years has been as follows:-
Prepared opium sold. Per Head.*
Taels.
351,560
233,495
195,224
292,830
247,352
Taels.
.35
.23
.195
.30
.25
237
smuggled, and it has been estimated that the illicit traffic is at least as great as the legitimate sales. It will be observed from the figures already quoted that the con- sumption of Government opium has declined in the last few years. This decline does not, however, indicate any real decrease in consumption. What is happening is that more and more of the traffic is being captured by the smugglers. The price of the ordinary brand of Government opium is $14.50, and it is understood that smuggled opium is sold for as little as $2 per tael.
5. In October, 1927, the Hong Kong Government reduced the price of its opium experimentally in order to try and recapture the market from the smugglers. The consumption of Government opium immediately increased considerably, as is shown by the figures for 1927. At the same time the illicit traffic as reflected by the number of seizures showed a very marked decline. At the end of January, 1928, the experiment was discontinued and prices were restored to their former level. The decline in consumption of Government opium has since been resumed as is shown by the following figures of the opium revenue received for the first 18 weeks of the years 1926 to 1929.
℗
1926
1927
1928 1929
$
1,101,638
1,049,013
1,386,528 947,684
PUBLIC RECORD OFFICE
Reference :-
PERFIC.O.882/11
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
| PUBLIC RECORD OFFICE, LONDON
1924
1925
1926
1927
1928
i.e., of total Chinese population.
The price of Government opium has remained at $14.50 per tael since 1918, except during the period 3rd October, 1927, to 27th January, 1928, during which three different brands of Government opium were sold experimentally at $15, $8.33, and $6.66 per tael. (At present rates of exchange $1 2s. approximately.)
2. The law provides for complete Government control of the preparation and distribution of opium. The retail distribution is in the hands of Agents who buy and sell at the Government price, that is, without profit, and are paid a wage out of which they meet the expenses of the shop. Saloons or divans, that is, premises on which public smoking is permitted, are illegal in Hong Kong and the enforcement of this prohibition has occasioned a great deal of trouble, up to 5,000 persons per annum being convicted of offences against it. As in Malaya, traffic in dross is for- bidden, and the sale of opium to minors is illegal. Copies of the Hong Kong Opium Lawst in force are attached. The raw opium required by the Government is at present imported solely from India, but in manufacturing prepared opium for smoking a proportion of seized opium (Chinese or Persian) is mixed with the Indian to form the standard quality of Government opium.
3. It will be seen that Hong Kong has not been able to reach the same stage in the control of opium smoking as has Malaya. The difficulty is that the Colony is geographically an integral part of China. There is constant inter-communication between Hong Kong and the neighbouring parts of China, e.g., Canton, and a daily ebb and flow of some thousands of Chinese. Apart from this regular flow, when conditions in South China are disturbed, as they have been repeatedly in recent years by civil war, tens of thotusands of refugees flock to Hong Kong in a few weeks and return to their homes later when conditions improve. The existence of such a large floating population makes any system of registration practically impossible. At the same time the fact that the population of Hong Kong is predominantly Chinese, t indistinguishable in customs and habits from the Chinese in China itself and in frequent intercourse with them, makes it impossible for Hong Kong to enforce a higher standard in such matters as opium smoking than prevails in China. At present spium smoking is in practice allowed to go on unimpeded in the neighbouring provinces of Kwangtung and Kwangsi, and large quantities of opium are produced not far away in Yunnan. While this remains true the Government of Hong Kong is convinced that no efforts it can make can succeed in completely suppressing opium smoking in the Colony.
4. The conditions described above make it extraordinarily easy to smuggle opium into Hong Kong. A table showing the seizures of opium Hong Kong since 1918 is attached. The seizures of course represeent only a proportion of the amount
† Not reprinted. 4. The Chinese form 98 per cent. of the population of Hong Kong.
At the same time the smugglers resumed their operations, as was shown by an imme- diate increase in the number of seizures.
6. Since the beginning of 1928 the Government has abandoned its attempt to detect and punish small infringements of the Opium Law, and has concentrated on prevention of large illicit shipments of opium. This change of policy is reflected in the figures of seizures for 1928. Numbers show a considerable decline, but the total amount seized is practically the same as in 1927. The number of convictions for "divan" offences in 1928 was only 13 as compared with 4,796 in 1927. This does not mean, of course, that an equal number of offences were not committed, but merely that the Government has found it impossible to enforce the law in this respect, and has been obliged to give up the attempt. This policy was forced upon the Colonial Government by the enormous numbers of such convictions, resulting in an over-crowding of prisons, &c., but they are naturally very reluctant to continue to countenance in this manner the breaking of the law in view of the very serious effects this may have on the general respect for law on the part of the Chinese population.
7. Opium revenue forms a less proportion of the total revenue in Hong Kong than in Malaya (in 1928 it was 10.34 per cent.), and it has not been thought necessary to create any special Opium Revenue Reserve Fund. The Governor stated in the Legislative Council in September, 1927, that the Government was very willing to forego its opium revenue as soon as production and consumption of opium in China are suppressed.
III. NORTH BORNEO AND SARAWAK.
1. North Borneo. The preparation, and distribution of opium has now been brought completely under the control of the Government. All opium shops and retail establishments are directly controlled by Government, although there are also a few estates which are licensed to distribute opium to their own labour forces. It has not yet been possible to introduce any system of registration in North Borneo.
2. Sarawak. The Government of Sarawak has advanced further than any of the other Governments of British Dependencies in the control of opium smoking. The Government has had for some time complete control of distribution of opium together with a registration system, and on the 1st of March, 1927, the register was closed, that is, no new smokers were to be registered. This resulted in a decrease in opium consumption in 1927 of 9.2 per cent. Smuggling is, of course, a much less serious problem in Sarawak than in Malaya and Hong Kong, as the Chinese popula- tion is comparatively small and stable and the State is away from the main trade
routes.
238
STATISTICAL TABLES.
OPIUM REVENUES IN MALATA, 1927.