CO129-349 - Governor Sir Lugard - 1908 [10-12] — Page 108

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Enclosure 4.

losure 3

Mr. Clementi dated the 7th. ultimo

104

in which he points out

that the assumptions, on which the Opium Farmer's claims

are based, are (a) that in the event of the abolition of

all Divans, the Farm will lose the whole of its Dross

Opium, and the half of its Prepared Opium, business: and

(b) that in the event of the closure of 52 Divans the Farm

will lose the value of two-thirds of its Dross Opium, and

one-half of its Prepared Opium dealings with those Divans.

On the basis of these assumptions, Mr. Clementi shows that

the claims of the Opium Farmer are reasonable: and,

al-

-though I think that the Opium Farmer's assumptions would

not prove to be correct, and that he has much exaggerated

the loss (if any) which his business would suffer,

this

is a matter which could only be proved by actual experiment

and I see no prospect of inducing the Farmer to alter his

assumptions. Indeed he has plainly intimated that he is

not prepared to reduce his claim, and that, therefore, in

the event of refusal the question would have to be decided

in a Court of Law where I fear the effort of the Govern-

-ment to obtain better terms would probably fail.

16.

I further enclose a copy of a

minute by Mr. Hutchison dated the 7th. ultimo in which he

shows that the compensation payable to Divan-keepers,

calculated