CO129-358 - Governor Sir Lugard - 1909 [10-11] — Page 403

1

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400

there was no violation of the terms of the Chefoo Convention, as the prices was increased (i.e. a tax levied) after the opium had been imported and the packages opened.

In June July of this year the British Consul-General had forwarded a translation of a memorandum draw up by the Governor of Hongkong on the subject of the prevention of the Bmuggling of Opium into Hongkong. The Governor stated that it was beyond the wit of man to devise a satisfactory method of stopping the smuggling of Opium into Hongkong for the reason that the price of opium in Hongkong and the Straits was many

If it was desired times higher than in the South of China.

to stop this traffic and thereby fulfil the promise contained in China's undertaking with Hongkong, the only possible method was to raise the price of Opium in China and bring it to a

There would then level with the price obtaining in Hongkong.

•

be no profit attaching to the smuggling into Hongkong. If therefore measures could be taken to secure this increased price the prevention of the smuggling traffic, would meet with success and the assistance would be rendered both to their efforts to stop consumption and to the revenue of China.

This the Bureau observed, was a really intelligent

and far seeing exposition of principle, from which it was obvious that an increase in the price of prepared opium diâ not involve a breach of treaty and would have the effect of

The present stopping the smuggling of opium in Hongkong.

deliberations on their opium policywere being conducted on the lines of the Governor of Hongkong's expression of opinion, and would not cause dislocation either to Chinese or foreign

opium traffic.

I have the honour to communicate the report of the Opium Prohibition Bureau for your information and avail &c.

(Seal of Viceroy).

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