4
passing the stations without paying li-kin, and that opium was being allowed to pass for 30 taels a picul. I do not know what amount of truth there is in this statement, but there can be no doubt that for nearly three weeks in February the stations around Macao and Hong Kong refused li-kin when offered, and advantage was taken by the Chinese to ship into China as much opium as could be got hold of, so that the markets are now pretty well glutted.
This Government will be in a much stronger position for having submitted the new proposals, even if they are not acceptable to China, and, as I have said, in that case the Government will have to pass the measure, although by a majority of one official vote, and that will be Mr. Russell's, who now takes a seat at the Council in the absence of Sir George Philipps.
7. The Colonial Government, out of deference to the Chamber of Commerce and the five unofficial members of Council, who have large interests in the Colony, would be prepared to give the scheme now proposed a trial, and if it were found to fail, then to enact the measure now before Council.
I have, &c. (Signed)
W. H. MARSH.
Inclosure 3 in No. 2.
Scheme proposed by the Undersigned for allowing export of Raw Opium in Quantities less than one Chest.
1. RETAIL sale and export of raw opium in quantities less than one chest will be confined to persons licensed by Government at a nominal fee, the said licensees to enter into bonds of at least 5,000 dollars each to comply with certain conditions:-
(a.) That no opium, unless samples not exceeding 2 taels (duly certified by the importer), shall be admitted into his premises or be under his control except what he obtains in registered chests.
(b.) That he will not part with any opium until he has received a permit of removal from a Government officer and a receipt from the master of junk or other vessel by which the opium is to be exported, which receipt may be made on the official removal permit, and must be retained by the licensee.
(c.) That the said licensee will make up and indorse on every parcel the quantity and kind of opium, and his own name and that of vendee, and that he shall attach a certificate of sale which will not be valid for more than three days, including day of issue.
(d.) That he will permit a search for deficiencies and deliver official removal permits when Government official may require, and be liable to penalty and forfeiture of licence in case of deficiency.
2. That, with a view to prevent the said opium being in any way relanded and reimported to the detriment of the prepared opium farm, the Government official charged with the duty of granting permits of removal shall at once wire to the officer in charge of Imperial Majesty's Customs at Kowloon the quantity, quality, marks, and numbers of the opium shipped by each vessel, with name of vessel and number, if any, and the name of the vendor of the opium, and the Customs officer will report all short arrivals.
3. Government official may, in his absolute discretion, refuse permit for shipment by any vessel.
Masters of vessels not clearing for a port of China and having opium on board will have it placed on their manifests, and undertake that it shall not be relanded.
The Committee of Chamber of Commerce and dealers in opium, import and export, recommend this scheme as one which will be satisfactory to them, and will at the same time protect the opium farm and meet other objects which Her Majesty's Government have
in view.
Approved by: (Signed)
(Signed) C. P. CHATER.
JNO. J. FRANCIS, Counsel for Chinese Dealers. WM. H. BRERETON, Counsel for the Importers and
Wholesale Opium Merchants.
I am directed to signify, on behalf of the Committee of the Hong Kong Chamber of Commerce, that, as the dealers in opium have expressed themselves willing to accept the conditions herein, the Committee have no objections to offer.
(Signed) H. U. JEFFRIES, Secretary to the Chamber. Hong Kong, April 4, 1887.
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