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3. From the 1st July, 1924, the opium business will be conducted as a Govern- ment monopoly under the immediate control of the Department of Trade and Customs. A European officer will be specially employed, under the Commissioner of Trade and Customs, to supervise the work.

4.

When the monopoly is taken over by the Government in July, the practice of limiting the sale of prepared opium to Government shops will be instituted. This presents no difficulties in regard to the town, but in certain outlying districts not easy of access it may be necessary to licence a few shops for the issue of opium to small communities of Chinese. Such shops, if found necessary, would be inspected periodically and their number reduced as opportunity offered.

5. The fixing of a uniform maximum limit for the amount of prepared opium placed on sale for consumption, calculated according to the number of the adult Chinese male population, has much to commend it, and I shall be glad to follow as far as possible any standard that may be adopted in the Straits Settlements or other Malayan countries under British protection. I see that in the Netherlands Indies the average amount consumed by a population of 400,000 Chinese is calculated at 700 grains per man per annum. I am taking steps to ascertain if possible the average con- sumption per man in Sarawak.

6. The possibility of introducing some system of registration of smokers was placed before the Opium Farms Syndicate some three months ago. The Directors of the Syndicate expressed their complete willingness to assist in every way possible and for some time they have been considering the best method of carrying it out.

I have little doubt that a fairly effective system of registration and licensing of smokers can be evolved in this country and in organizing it the experience of the Dutch in the Netherlands Indies will form a valuable guide. I should also be grateful for any information as to the methods adopted for registration in the Straits Settlements and as to when it will be introduced.

7.

I agree that the price at which prepared opium is retailed in the different territories should be made uniform so far as circumstances permit. In this connexion I shall be glad if Your Excellency will inform me from time to time if and when any change in the price of retailed opium is contemplated in Malaya or in Brunei.

8. I note Your Excellency's request for a memorandum (for the information of the British Delegation to the proposed International Conference) containing a full expression of the views of this Government on the opium situation in Sarawak. The memorandum will be furnished to Your Excellency before the end of May, 1924, as requested.

9. Your Excellency's suggestion that Mr. A. M. Pountney, C.M.G., C.B.E., who has been selected to represent the Colony of the Straits Settlements, the Federated and Unfederated Malay States, should also represent Sarawak is much appreciated. With Your Excellency's concurrence, however, I would prefer to instruct a Member of the Sarawak State Advisory Council to represent Sarawak at the proposed Con- ference, as I am sure Your Excellency will agree that his information on the opium position in Sarawak being first-hand, will be of additional value to the Conference.

10. In this connexion I notice that this State is not included in the list of those who are parties to the Opium Convention of 1912, although His Highness the late Rajah expressed his agreement with the aims and objects of the Convention. I should be glad if Your Excellency would bring this small point to the notice of the Secretary of State, as I think it is in the interests of this country that its name should appear in the list of those supporting this movement. Its non-appearance Your Excellency will probably agree is liable to misinterpretation.

and after the 1st July, 1924, the Opium Farm will be taken over by the Government and conducted as a Government monopoly.

4. The Government has no desire to make it more difficult in any way for genuine opium smokers to obtain sufficient opium for their actual requirements and to smoke it in comfort. Government, however, intends to prevent as far as possible those who have never smoked opium, particularly young men, from beginning to smoke it.

5. In order to attain this object, which is particularly insisted upon by the League of Nations, Government proposes to close all opium retail shops and opium smoking dens. In their place a small number of shops will be opened by Governinent in suitable localities, where opium can be bought and, if desired, smoked. For the latter purpose suitable rooms will be provided by Government. They will be kept open as far as possible during the same hours as at present.

6. To restrict the smoking of opium to those who now smoke opium, it will be necessary to introduce a system of registration. Every person who wishes to purchase

licence opium will be required to produce a

which will be obtainable from the Officer-in-Charge of the Government Opium Monopoly. The "licence" will be similar to a passport and for purposes of identification will contain a photograph of the holder, his name and address.

7. It is not proposed at present to restrict the amount of opium to be sold to each person. They will be permitted to buy as much as they like, but can only do so on production of the necessary "licence."

After the Government has taken over the Opium Farms on 1st July, 1924, persons found in possession of opium which has not been prepared by the Government factory will be severely punished.

8.

Similarly, persons without an opium licence, found in possession of any opium will be severely punished.

9. Government has no intention of raising the price of opium unless neighbouring countries do so, in which case it will be necessary for Sarawak to follow their example in order to prevent smuggling.

10. It is hoped that arrangements can be made with the present Farms Syndicate to take over most of their paid staff so that the opium business in Sarawak may remain in expert hands. Government is anxious to avoid causing hardship to those to whom opium has become a necessity of life. To ensure the smooth working of the new system, the willing co-operation of all communities interested in the opium business is invited.

11. Government proposes to appoint a small Committee to represent the interests of opium smokers and in that capacity to advise Government from time to time on the working of the new system

J. C. MOULTON,

Kuching,

20th December, 1923.

16716/24.

No. 18.

Chief Secretary.

OPIUM FARMS IN SARAWAK.

HONG KONG.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 7th April, 1924.)

I have, &c.,

C. V. BROOKE,

(Confidential.)

Rajah.

SIR.

1. Under pressure from the League of Nations, the British Government has decided that certain measures should be introduced to control and restrict the use of opium.

2. The State of Sarawak, being under the protection of Great Britain, has been invited to co-operate and follow as far as possible the measures taken elsewhere by States, who, as member of the League of Nations, have signed the Opium Convention.

3. His Highness the Rajah has therefore decided to exercise his powers under the present Farms lease and to terminate that lease on the 30th June, 1924. On

[Answered by Nos. 27 and 35.]

Government House, Hong Kong, 6th March, 1924. I HAVE the honour to acknowledge the receipt of the Duke of Devonshire's Confidential despatches of the 24th of September* and 13th of December, 1923.† and to inform you that, in accordance with His Grace's instructions, I appointed a Committee to consider the suggestions made by the Advisory Committee of the League of Nations with regard to the application of Chapter II of the Opium Convention.

2. The Committee was presided over by the Colonial Secretary, Sir Claud Severn.. K.B.E., C.M.G., and the other members were-

Mr. P. H. Holyoak, the representative of the Chamber of Commerce on the

Legislative Council;

* No. 9.

+ 57819/23: not printed.

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PUBLIC RECORD OFFICE

Reference :-

C.O.882/11

PUBLIC RECORD OFFICE, LONDON

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