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PUBLIC RECORD OFFICE

Reference :-

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TELEC.O. 882

5 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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the neighbouring Empire), or else that the Government should altogether interdict the importation of any opium into the island, which would lead to far more " State created " crime than can at present be complained of.

Mr. Whitehead does not recommend either of the above courses, but urges that the Government should itself collect a tax on raw opium, by instituting a bonded warehouse system. All opium should, he thinks, be stored in warehouses on its arrival here, and a duty levied on so much of the drug as might be delivered from bond for local consump- tion, while the remainder could be transhipped free of duty.

But I fail to see how this system would diminish the two evils of which he complains, (1) opium smoking, and (2) smuggling.

Smuggling would still continue, for it would be a profitable undertaking to evade the duty levied on opium for local consumption, and, moreover, opium would still continue to be smuggled into China via Hong Kong. For, so long as Hong Kong is situated as it is, and high duties are levied in China on her imports, it is naturally difficult to suppress smuggling.

Moreover, the impossibility of raising by such means a revenue at all comparable with that obtained by the present system, is clearly shown in the speech of Mr. Mitchell-Innes in reply to Mr. Whitehead, as reported in the newspaper extract enclosed.

However, this is a question which it does not seem necessary to enter into fully at present.

5. I have to remind your Lordship that the present lease of the opium farm expires on the 1st of March next. It has accordingly been necessary to issue notices inviting tenders for the farm, copy of which I enclose.

6. It will be within the recollection of your Lordship that one of the conditions of the modification of the present Farmers' Agreement, which were communicated to your Lordship in Sir G. W. Des Voeux's Despatch of the 1st of May,* was that the farmers should only be allowed to draw at the rate of 1,500 chests per annum. This limit was recommended by Sir James Russell.

In the case of the next farm it is proposed to increase the drawings to 1,800 chests per annum, which does not, the circumstances, appear an unreasonable quantity.

7. It is extremely difficult to ascertain, with accuracy, what the actual legitimate requirements of the farmer are, but I am informed by the Treasurer that he has good reason to believe that the farmers' export business to countries other than China has improved of late, and it does not seem desirable to place too low a limit on the number of chests in calling for tenders for a lease of three years' duration, as it is quite possible that, putting the ordinary fluctuations of trade aside, new markets may be opened for opium within that period.

I should point out at the same time that 1,800 chests per annum is exactly half the number to which this Government voluntarily limited the farmer in the lease which is about to expire. This large diminution is therefore a voluntary concession in the interest of China.

8. As the three unofficial members present opposed the third reading of the Bill, I think it important to draw your Lordship's attention to the fact that they did not do so on any ground of principle, but avowedly because the Government would not tie itself down in no case to accept a tender for the farm for a longer period than two years, a term which would not suffice to make it worth while for anyone to undertake the farm.

Dr. Ho Kai, who seconded the amendment, admitted that he had no objection to a term of three years, and it is not the intention to exceed that period, unless under very exceptional circumstances.

9. In conclusion, I think it but right that I should state that I am much indebted to Sir James Russell for the valuable assistance he has rendered in the consideration of the many matters connected with the preparation of these Ordinances, and I consider that the thanks of the Government are due to him for the readiness he has displayed in helping with his advice the officers who were directly responsible for the drafting of the Ordinances.

I have, &c.

• Not printed.

G. DIGBY BARKER,

Major-General.

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· Enclosure 1 in No. 22.

No. 21 of 1891.

AN ORDINANCE enacted by the GOVERNOR OF HONG KONG, with the advice and consent of Title.

the LEGISLATIVE COUNCIL thereof, to repeal ORDINANCES No. 1 of 1884 and No. 17 of 1886 and to amend the Law relating to the preparation of Opium.

(L.S)

G. DIGBY BArker,

Officer Administering the Government.

November 13, 1891.

Be it enacted by the Governor of Hong Kong, with the advice and consent of the Preamble. Legislative Council thereof, as follows:-

I. This Ordinance may be cited for all purposes as The Prepared Opium Ordinance, Short title.

1891.

2. In the construction of this Ordinance the following terms and expressions shall Interpreta- have the meanings respectively set against them, wherever the same are consistent with tion. the context:--

Colony-Shall include the waters thereof.

(1 of 84, 1.)

(1 of 84, 1.)

Excise Officer.Any person appointed under the Ordinances hereby repealed and (1 of 84, 1.)

continued under this Ordinance or any person appointed by the Governor under section 3 of this Ordinance as excise officer. Farm.-Any exclusive privilege granted under this Ordinance. Farmer.--Any holder for the time being of any such exclusive privilege. Opium Farmer. The holder for the time being of the exclusive privilege of preparing

and selling prepared opium, either inclusive or exclusive of dross opium: Dross Farmer. The holder (if any) for the time being of the exclusive privilege of

collecting and purchasing dross, and preparing and dealing in dross opium. Divan Farmer. The holder (if any) for the time being of the exclusive privilege of

opening, carrying on, or licensing any class of opium smoking divans.

When there is no opium farmer, or no dross farmer, or no divan farmer, this Ordinance shall be read as if the Governor in Council or any person licensed for the purpose by the Governor in Council were expressly named instead of the opium farmer, or as if the Colonial Secretary, or any person licensed for the purpose by the Colonial Secretary were expressly named instead of the dross farmer, or the divan farmer, or either of them. And payment or delivery to the Treasurer, for the use of the public revenue, or to an excise officer for the same purpose shall in all such cases be taken to be payment or delivery to such farmer under this Ordinance. Implement. Any vessel, utensil, instrument, or other thing which has been used or which is probably intended to be used for containing prepared opium or for preparing, or aiding in preparing any opium, or for smoking opium.

(1.) Opium-Shall include dross and dross opium.

(2.) Prepared Opium-Shall, so far as relates to the infringement of the opium farmer's privilege of preparing opium within the Colony, mean opium which has been subjected to any degree of artificial heat for any purpose what- ever, and shall include dross opium whenever such a construction is consistent with the context.

(3.) Dross-Shall mean the refuse produced by smoking opium, and dross opium

shall mean opium prepared wholly or chiefly from such refuse.

Possession. Any opium, implement, or other thing shall, for the purposes of this (1 of 84, 1.)

Ordinance, be deemed to be in the possession of any person if he has such opium, implement or thing in possession, custody, or control, by himself or by any other

person.

Preparation. The subjecting of opium of any kind to any degree of artificial heat, for

any purpose whatever, shall be taken to be the preparing of such opium.

ShipAny steam or sailing vessel, junk, boat, sampan, or any kind of craft used for (17 of 86, 2.1

the conveyance of persons or things by water, or which may be so used. Summary Conviction ---Conviction before a police magistrate of the Colony.

Excise Officers.

3. All existing excise officers appointed under the Ordinances hereby repealed shall be Excise continued under this Ordinance, and the Governor may, from time to time, appoint in officer.

(1 of 84, 5) C 4