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Memorandum of 6th of May, 1912, and the Ordinance was submitted for the con- sideration of the Secretary of State. The Secretary of State in his despatch dated 19th July, 1912, expressed his approval of the Ordinance, and desired the intro- duction of certain additional provisions. These have been introduced as follows:- are inserted (1) The words" not being or having the status of a ship of war

after "ship" in Section 12. Section 12 was numbered 11 in the draft which was submitted.

(2) Section 3 has been introduced to forbid the cultivation of the opium

poppy.

(3) Section 17 has been introduced to enable the Governor to fix by proclama-

tion the date on which the Ordinance shall come into force.

4. In my opinion, His Excellency the Governor's assent may be properly given to this Ordinance.

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4. A system of very large rewards has been established for seizures or infor- mation leading to seizures of opium, morphine, &c., which is being handled in an illegal manner for purposes of smuggling.

5. The definition of opium divan is widened in the Ordinance referred to above with a view to strengthening the hands of the police in dealing with the opening of such divans, which since the 1st of March, 1910, has been illegal.

6. The use of prepared opium is further discouraged by the advance in price for which it is sold under the monopoly system. The price is now $5.50 a tael for prepared opium and $2.50 a tael for dross opium.

7. With a view to possible improvement in the control of the purchase of pre- pared opium, this Government has under consideration a scheme for taking the opium monopoly into its own hands from the 1st of March, 1914.

His Excellency

the Governor.

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I have, &c.,

W. R. TOWNSEND,

Attorney-General.

Enclosure 2 in No. 159.

I have, &c.,

F. H. MAY,

Governor.

(No. 102.)

SIR,

No. 159.

HONG KONG.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 17 April, 1913.)

[Copy to Foreign Office, 16th May, 1913. L.F.]

Government House, Hong Kong, 27th March, 1913. WITH reference to the last paragraph of your despatch, No. 61, of the 8th of March, 1912, I have the honour to inform you that the further steps taken by this Government to give effect to the Hague Convention are as follows:-

1. The opium monopoly which expired on the 28th ultimo has been renewed for twelve months only, instead of being let for a period of three years in accordance with previous practice, subject to the provisions of Ordinance No. 2 of 1913† (copy enclosed).

The scope of this Ordinance is fully explained in the accompanying report by the Attorney-General. The Ordinance is designed to give this Government coni- plete control over the movement of raw opium, with the object inter alia of giving effect to the agreement under which only certified Indian opium may be imported into China, and to regulate the purchase of prepared opium in the Colony with a view to the prevention of its illicit export. The penalties for infractions of certain clauses of the Opium Ordinances, which are aimed at smuggling of opium, are very largely increased.

The penalties for the unlawful possession of morphine and compounds of opium are very largely increased.

2. The quantity of opium which the lessee of the opium monopoly may use has been reduced for the term of his lease to 660 chests. Under the lease just expired Of the 660 chests 540 are for local consump- he was allowed 900 chests per annum.

tion and 120 chests for export. It is calculated that the amount allowed for local consumption is legitimately required. No export will be permitted except on pro- duction of permits for importation by the Government of the country of destination.

3. The sale of medicinal opium, of morphine, of any alkaloid or constituent of opium, of coca, cocaine, and all its derivatives, and of the preparations of any strength of the above-mentioned substances, has been so drastically regulated as to prevent, as much as is possible, any abuse and ill-effect arising from the adminis- tration of these drugs.

The sale of heroine and other derivatives of morphine or cocaine is restricted as a poison under the Pharmacy Ordinance. No necessity has yet arisen to legislate specially for these poisons, but the matter is engaging attention.

• No. 4.

Not reprinted.

"

AN ORDINANCE TO AMEND THE

REPORT ON ORDINANCE No. 2 or 1913, ENTITLED

OPIUM ORDINANCE, 1909."

1. Section 1 is formal.

2. Section 2 brings the Ordinance into operation on the 1st March, 1913, which

is the date of the termination of the recent agreement with the opium farmer.

3. Section 3 (a) enlarges the definition of opium divan.

4. Section 3 (b) provides for the appointment and superintendence of ware- houses for the warehousing of raw opium.

5. Section 3 (c) prohibits the discharge of raw opium from a ship without a permit for delivery of such opium except to a warehouse.

6. Section 3 (d) prohibits the landing of raw opium, except under special permit or for delivery under permit to a warehouse; it prescribes the form and nature of such permits; gives the Superintendent of Exports and Imports power to make it a condition of such landing permit that the raw opium in question must be placed in a warehouse in the case of raw opium other than Indian opium certified for the China market; and also gives the Superintendent authority to demand the production

of such certificate in the case mentioned above.

7. Section 3 (e) prohibits the removal of raw opium for exportation without a permit; prescribes the form and nature of such permit; gives the Superintendent authority to call for any mercantile or other documents which will satisfy him as to the true destination of such opium, and also prohibits the exportation of raw opium to any place which has been notified in the Gazette in pursuance of any resolution of the Legislative Council as being illegal. This Section also provides that the master of any ship carrying raw opium for exportation shall be furnished with a memorandum containing the particulars of such export; and prescribes a penalty in the event of contravention of this clause by the master. The section also prohibits the moving of raw opium within the Colony without permit; gives the Superin- tendent of Exports and Imports power to make it a condition of such movement that the raw opium in question must be placed in a warehouse in the case of raw opium other than Indian opium certified for the China market; and also gives the Superintendent authority to demand the production of such certificate in the case mentioned above. The section also provides that those in authority over a ship importing opium must, within a reasonable period after the arrival of their ship. furnish the Superintendent with particulars of the opium imported in their ship, and similarly in the case of exporting opium.

8. Section 3 (f) increases the penalty for contravention of Sections 10, 11, 12, 14, 15, and 16, which sections in the old Ordinance of 1909 are repealed by the present Ordinance and are re-enacted in Section 3, Sub-sections (c), (d), and (e).

9. Section 3 (g) increases the penalty in Section 20 of the old Opium Ordinance, 1909, which deals with the unauthorised importation of or deficiency in stored raw opium.

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HA

PUBLIC RECORD OFFICE

Reference :-

C.O. 885

22 PUBLIC RECORD OFFICE, LONDON

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