CO882-(4-5) — Page 346

PUBLIC RECORD OFFICE

Reference :-

TTICO. 882

5 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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Any further information on this subject may be obtained from the Colonial Treasurer.

"Colonial Secretary's Office, Hong Kong, 4th August 1883."

By command,

"W. H. MARSH,

"Colonial Secretary.

2. It will be seen that tenders will be received until the 18th October next. But it is not necessary that the local Government should decide at once; and it will probably not feel called upon to come to a speedy decision unless some eligible offer should be received.

3. I entirely concur with what I believe to be the view entertained by your Lordship, viz., that it is very desirable to minimize as far as possible the connexion of the Colonial Government with the opium trade. However, your Despatch of 9th May ultimo con- vered your approval of the action of Mr. Marsh and the Executive Council in deciding in the absence of a suitable offer for the opium farm, to issue licenses at a fixed rate, and to levy a tax on boiling under section 3 of Ordinance 2 of 1858,"

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4. Mr. Marah has already explained that in issuing such licenses direct to applicants, the Colonial Government does no more than is done by the Government of the United Kingdom in issuing licenses for the distillation and sale of spirituous liquors, and for the sale of tobacco. It is agreed on all sides that this Government should have no further concern with the sale of opium for consumption beyond issuing licenses, the conditions of which subject the holders to a certain amount of wholesome supervision. It is further shown that by far the larger bulk of the opium prepared at Hong Kong is not consumed in this island, but is shipped to California or Australia.

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5. I am informed that it was feared at first that in taking into its own hands the issuing of licenses to all properly qualified applicants, the Government was undertaking a task which would be found very burdensome owing to attempts to defraud the revenue, which it would be difficult to frustrate. Experience has shown, however, that such difficulties have been over-rated, and the supervision maintained has apparently been effectual. The gross revenue received from the 1st March ultimo to 25th August instant has been $163,803, and the expenditure during that period has been $3,743, leaving a nett revenue for six months of $160,000. The farm was sold on the last occa sion for $210,000 for 12 months.

6. It is stated that the opium boilers, with the sole exception, perhaps of the late lessees of the farın, are well satisfied with having to deal with the Government direct instead of with middlemen, and that the lower rate of license duty charged by Govern- ment is not their only reason for preferring the existing state of things to that which has prevailed until this year. All are now treated alike, without any privileges being accorded to one which are not extended to all.

7. Again, it is alleged that the water of Hong Kong possesses some peculiar qualities,† which render it better fitted than that of other countries for the boiling of opium; and this consideration, added to the exceptional facilities afforded by this port both as regards the receipt and despatch of opium, gives Hong Kong a considerable advantage over other places where opium is prepared for use. A large quantity of opium prepared in Penang and in Macáo has been brought here for shipment to America, and the full duty has been levied thereon as if it had been boiled and prepared in this Colony. It seems not improbable that, with the increased facilities now offered, a great quantity of opium which is now prepared at Penang and Mação will in future be prepared at Hong Kong. am aware, however, that if Hong Kong should become a large centre for manu- facturing opium, that result, although calculated to increase the trade and revenue of this Colony, will not be favourably regarded by those persons in England who are, on principle, altogether opposed to the opium traffic.

8. Under the circumstances referred to above, and looking to the extensive sanitary and other public works on which this Colony is now embarked, the local authorities here deem it inexpedient that the Government should be fettered with any hard and fast direc- tions in a tutter which concerns the principal item of the public revenue, and hope that your Lordship will empower me (by telegraph), to deal with this matter, when the time arrives, in such mode as may theu seem most advantageous to the public interests. I am assured that the members of both the Executive and Legislative Councils would advise the Government to continue the system of issuing licenses dírect to proper applicants in

* No. 6.

↑ As has been said of the water of the Thames with regard to porter; and of the water of the Treat with regard to ale. It may not be impertinent to add that the term Hong Kong in Chinese means “ Fragrani streams.'

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preference to accepting a tender of an inadequate sum for the opium farm. Owing to the large amount of capital required for working the farm the competition is necessarily limited, and on the last occasion there were no tenders that could be accepted.

9. In my previous Despatch on this question, of the 7th June ultimo*, I remarked that I am of course aware of the objections entertained in many highly respec- table quarters in England against the opium trade in general, and, in particular, against any direct connexion of the British Government in India or elsewhere with that trade. But this question has been decided so far as India is concerned, in the manner shown by the voluminous papers on the subject which have been laid before the Imperial Farlia- ment.+

10. The principles at issue at Hong Kong appear to be much the same as the princi- ples at issue in India. The local Government and Legislature of this Colony, as of British India, are in favour of continuing the existing system. Their feeling appears to be eminently practical, viz., that as the principle of Government interference with the opium trade has been sanctioned, it is expedient that such-interference should be carried on in the manner which may be found most profitable to the public revenue.

11. However, the opium question has now become a matter of Imperial interest, and may at any time become once more the subject of debate in the Imperial Parliament. Consequently, it is my duty to request that I may be favoured by your Lordship with full instructions for my guidance in this matter.

17206.

SIR,

(No. 235.)

I bave, &c.

G. F. BOWEN.

No. 8.

The EARL OF DERBY to SIR G. F. BOWEN.

Downing Street, October 23, 1883

I HAVE the honour to acknowledge the receipt of your Despatch of the 28th of August‡ respecting the opium question.

I concur with you in thinking that it would be well, in the absence of a suitable offer for the opium farm, to continue the present system of issuing licenses for another year,

by which time it will have had a fairer and more complete trial.

But tenders for an opium farm should be again called for next year, as has been done this year, in case it may then be found desirable to revert to the old system.

In accordance with your request, I telegraphed to you on the 21st inst. my approval of the course you proposed to take on the present occasion.

18255.

No. 9.

I have, &c.

DERBY.

ACTING GOVERNOR MARSH to the EARL OF DERBY. (Received October 26, 1883.)

Government House, Hong Kong,

September 11, 1883.

(No. 232.) MY LORD,

I HAVE the honour to forward for your Lordship's information a statement showing the receipts and expenditure on account of licenses for boiling and preparing opium during the six months ending 31st August last. The gross receipts have been $179,654 55c. and the expenditure, not provided in the estimates, $4,128 96c. If to this sum be added the

• No. 6.

↑ I would refer in particular to the exhaustive letter from the Government of India of December 19, 1881, published at pages 5–46 of the “Correspondence with the Government of India on the subject of Opium " (C.—3878 of 1882).

‡ No. 7.

U 76470.

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