Dross is the residne of a pipe of opium, and might be compared to the "dottle" of a tobacco pipe. It contains a quantity of opium, wrapped, however, in carbonised matter so that it cannot be used until re-prepared. A number of hawkers collect from the ordinary opium divans and from private houses this dross, and sell it to the dross divans, which, by the permission of the opium farmer and for a consideration, are allowed to re-prepare and sell it. The fees levied from these dross shops are variable according to Locality. Some seven of these dross shops have paid no license and refuse to pay. It is now proposed to bring in a section regulating all these dross and smoking divans, and giving power to the Government to farm them,"
I submit a draft of an ordinance which is now needed to amend the existing law since there is no opium farmer, and also giving the power to let the dross farm.
With reference to the levy of duty on raw opium discussed at the conference, and to my interviews with Messrs. Sassoon and Belilios who have no objection to legislation on the question of broken chests, I beg also to subunit a draft ordinance. It will be remembered that at the late conference I submitted statistics, obtained from Mr. Wong Sz Tai, the Compradore of Mr. Belilice, showing that 2,000 chests of Bengal opium was retailed monthly here; about 400 Malwa and 150 Persian. I also mentioned that he suggested the collection of a fee through the three compradores of the importing houses as the opium was sold to the retail traders. I showed that 25 cents a chest would show a revenue of $7,680 per annum, and that a dollar would, therefore, be $30,720 a year. This is a very handy way of getting a revenue, and would be little oppressive, while the licensing at $30 a month would shut up many shops. The cost of freight to Macao and to Canton is $1 per chest. The limit of safety against smuggling back from Macao would be $2 per chest.
We may not have to adopt this suggestion but it can do no harm to read this Bill a first time with a suspending clause.
The Hon. Frederick Stewart, LL.D., Acting Colonial Secretary.
I have, &c.
J. RUSSELL,
Colonial Treasurer,
direct connexion of the British Government with that trade. But this question has been decided by the Imperial Government in the manner shown in the voluminous papers on the subject laid before Parliament.
3. Such being the case, it only remains for me to report that the new system in- augurated by Mr. Marsh appears likely to prove successful in a pecuniary point of view. From documents laid before me, it seems that the opium revenue for the three months ended on May 31st ultimo, has yielded a gross sum of 136,000 dollars. The only tender received for the farm was for 11,000 dollars a month for three months certain, with the right to continue for another period of nine months at the same rate. It will thus be seen that in three months the Colonial Government has realised more than the offer made for the farm for twelve months.
4. It is not expected, however (as I am informed), that the opium revenue will continue to flow in at the same rate during the remainder of this year, for a great effort has been made by the manufacturers of the drug to prepare and ship for California as much opium as possible before the time when the increased customs duty comes into force in the United States of America. But there is reason to believe that the receipts for the twelve months will be considerably in excess of the receipts for the corresponding period of last year.
5. The expenditure on account of the opium revenue for the last three months has been 3,700 dollars, leaving a nett revenue for the quarter of 132,300 dollars.
6. I should mention that no reply has as yet been received here to Mr. Marsh's Despatches on this subject.
17206.
No. 7.
I have, &c.
G. F. BOWEN.
:
PUBLIC RECORD OFFICE
गय
Reference :-
C.O. 882
5 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH—NOT TO
6921.
SIB,
(No. 90.)
No. 5.
The EARL OF DERBY to SIR G. F. BOWEN.
Downing Street, May 9, 1883. I HAVE the honour to acknowledge the receipt of Mr. Marsh's Despatch of the 6th of March last, reporting that, in the absence of a suitable offer for the opium farm, the Government had decided to issue licenses at a fixed rate, and to levy a tax on boiling under section 3 of Ordinance 2 of 1858.
2. I approve of the action that has been taken in this matter, but I shall be glad to receive in course of time full reports as to the success of the new system of licensing, the initiation of which has been ably conducted by the late Treasurer, Mr. Russell.
3. I enclose for your information & copy of correspondence† with Sir J. Pope Hennessy, relating to a statement by the late opium farmer to the effect that he had undertaken "to adopt means to prevent merchants in any other British Colony exporting
opium to Australia and California.”
44
12515.
(No. 98.) MY LORD,
No. 6.
I have, &c.
DERBY.
SIR G. F. BOWEN to the EARL OF DERBY. (Received July 23, 1883.)
Government House, Hong Kong,
June 7, 1883.
In his Despatch of the 6th March ultimo, the late Administrator of the Govern- ment (Mr. Marsh) reported the action which he, with the unanimous advice of the Executive and Legislative Councils, had felt himself constrained to take, before my arrival here, in the matter of the so-called opium farm,
2. I am aware, of course, of the objections entertained in some highly respectable quarters in England against the opium trade in general, and in particular against any
• No. 1.
↑ Nos. 2 and 3.
No. 1.
SIR G. F. BOWEN to the EARL OF DERBY. (Received October 8, 1883.)
[Answered by No. 8.]
(No. 207.)
Government House, Hong Kong, MY LORD,
August 28, 1883. REFERRING to my Despatch of the 7th June ultimo,* and to much previous corre- spondence respecting the opium question, and the steps taken concerning it by Mr. Marsh, while administering the Government of Hong Kong, I have now the honour to report that the customary notices calling for tenders for the privilege of preparing and selling prepared opium within this Colony for the term of one, two, or three years from the 1st March 1884, have been issued in this Colony at Saigon and at Macáo. I anner a copy of the notification, which has been published in the Hong Kong Government Gazette:--
"GOVERNMENT NOTIFICATION.-No. 268.
"SALE OF THE OPIUM FARM.
"Tenders for the privilege of preparing and selling prepared opium within the Colony for the term of one, two, or three years from the 1st March 1884, under the provisions of the various Opium Ordinances of the Colony, will be received at this Office until noon on Thursday, the 18th October 1883.
"Each tender shall state whether the tenderer proposes to include the preparation and sale of dross opium in his tender or to exclude it. Tenders may also be sent in for the Dross Opium Farm alone.
"Each tender should specify the monthly payment offered for the periods above mentioned.
"The Government does not bind itself to accept the highest or any tender.
"Should the tenders be unsatisfactory to the Government, the Governor in Council will continue to grant licenses direct, or take such steps as may be necessary for obtaining a proper revenue.
• No. 6. A 4
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