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to shops under direct Government management and to offer the following observa- tions thereon.

2. I note that out of sixty-two licensed shops, thirty-four have been abolished and their place has been taken by six Government shops. There remain seventeen licensed shops in the country districts, where the establishment of Government shops would be difficult, and eleven in Hong Kong and Kowloon (though only nine are marked on the maps enclosed in your despatch under reply). This seems to me to be a reasonably satisfactory beginning, but I hope to learn in due course that further steps are being taken to close the eleven remaining licensed shops in Hong Kong and Kowloon as, on the information at present before me, there do not appear to me to be adequate reasons why they should not also be replaced by Government shops. I quite appreciate that time may be required for the consumers to adapt themselves to the new order of things and to the new brand of prepared opium. It is difficult, how- ever, to believe that the brand which the Chinese consume throughout Malaya iş unsuited to the tastes of Chinese in Hong Kong and it is probable that the Chinese smoker will soon get accustomed to it if the illicit traffic is energetically countered. As I have no doubt you fully realize, the effect on Government sales cannot, under. the Bangkok Agreement, be regarded as a reason for not establishing Government shops. The figures given in the second enclosure in your despatch under reply do not, however, appear to me to indicate that the marked falling off in sales of opium resulted from the institution of Government shops. They appear to indicate that the falling off was progressive from March to December, 1932, and that the opening of the Government shops in October had little effect. The big drop in sales occurred in February, 1933, immediately after the introduction of Singapore opium. It is of course particularly important at the present time that energetic measures should be taken to counter any fresh developments in the illicit traffic.

I should be glad to know what supervision is being exercised, in accordance with the requirement in the Bangkok Agreement, over the management of the licensed shops which still remain.

14044/33 [No. 2].

I have, &c.,

P CUNLIFFE-LISTER.

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was thought that it would be undesirable from a political point of view and that it would prove a hindrance to the recruiting of labour when times improve. Also it has been estimated that less than 5 per cent. of new Chinese immigrants are opium smokers and that over 80 per cent. of smokers in Malaya have acquired the habit after arrival in this country. (b) The Committee agreed that the closing of the registers of opium smokers is

both desirable and feasible.

(c) Amendments have been made to the rules governing registration of chandu smokers and were approved by the Legislative Council at a meeting held on the 31st July, 1933, from which date they have been in force. They include a new rule under which no smoker is allowed to purchase at the rate of more than 4 chi per day. Hitherto there has been no restriction beyond the provision in the Ordinance that no person may have in his possession more than 5 tahils of Government chandu. That is of course a very large quantity, yet there has hitherto been nothing to prevent a registered smoker from purchasing that amount several times daily, provided he is never found in possession of more. The fixing of this 4 chi limit is the first step towards restriction of consumption, and marks a distinct advance on the road to eventual rationing. Also the introduction of a card, bearing the photograph of the smoker, for recording purchases provides for the first time a guarantee that Government chandu is sold only to registered smokers. This will operate as an additional check to consumption.

5. I have carefully considered the advice of the Committee and have made further inquiry into the possibility of preventing the entry into the Colony of opium- smoking immigrants; but, in view of the opinion of my medical advisers that no physiological test exists by which a moderate smoker could be detected, I am compelled to agree that no practicable measures can be taken to prevent such entry. The matter is of less moment than would at first sight appear in view of the small percentage (estimated at only 5 per cent.) of immigrant smokers.

6. I am prepared to take action for the closing of the registers to new applicants after the 31st December, 1934. I think you will agree that this measure together

with the steps which have been taken towards rationing of registered smokers will

be the beginning of the end of legalised opium smoking in Malaya and that any more drastic action at the present would not be advisable.

SIR,

No. 53.

STRAITS SETTLEMENTS.

THE GOVERNOR to THE SECRETARY OF STATE.

(Confidential.)

(Received 11th September, 1933.)

[Answered by No. 58.]

Government House, Singapore, 10th August, 1933.

I HAVE the honour to acknowledge the receipt of your Straits Settlements despatch No. 52 dated the 8th February, 1933.*

2. I shall address you separately with regard to the proposal for transfer of a portion of the Opium Revenue Replacement Reserve Fund to the general surplus balances of the Colony and for crediting permanently to revenue the interest from that Fund. In my present despatch I shall confine myself to a reply to paragraph 5 of your despatch.

3. In that paragraph you asked me to consider whether the present circumstances of the Colony afford an opportunity for introducing the following new measures of control:-

(a) Preventing the entry into the Colony of opium smoking immigrants;

(b) Closing the registers after a fixed date to new applicants; (c) Fixing a ration for those already registered.

4. The proposal that these measures be introduced has been referred to the

Standing Opium Advisory Committee with the following results :-

(a) The Committee was not in favour of using the Aliens Ordinance, 1932, for the purpose of preventing the entry of opium smoking immigrants. It

* No. 47.

14028/1/33 [No. 9].

SIR,

No. 54.

I have, &c.,

C. CLEMENTI,

Governor.

COLONIAL OFFICE to FOREIGN OFFICE.

I AM directed by Secretary Sir Philip Cunliffe-Lister to acknowledge the receipt

Downing Street, S.W.1, 11th July, 1933. of Mr. Orde's letter of the 29th June,* forwarding a copy of a note from the Nether- lands Minister containing the draft of a note which the Netherlands Government propose to address to the other Parties to the Prepared Opium Agreement of 1925, regarding the applicability of Article VI. paragraph 2, of the Agreement to the transit through the ports of Singapore and Penang of prepared opium shipped from one part of the Netherlands East Indies to another.

2. I am to observe that the wording of the draft note does not appear to be in strict accord with the views expressed in previous correspondence on this subject. Sir Philip Cunliffe-Lister would therefore suggest, subject to the concurrence of the * 14028/1/33 [No. 8]: not printed.

PUBLIC

PECORD OFFICE

Reference -

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PUBLIC RECORD OFFICE. LONDON