CO129-394 - Governor Sir May & Public Offices - 1912 [12] — Page 18

16

0.0.

QP Y.

507

Estimate of the Rental of the Macao Farm for legitimate

consumption.

1.

I have previously given an estimate for the legitimate

local consumption of Macao and think that 135 chests is a reason-

-able estimate. The export is to be taken at 120 chests.

2.

The price of raw opium (uncertified) at the last

auctions was 1,800 rupees or taking the dollar at 2/- $1,200 per

chest. The price of raw opium may increase, but with the severe restrictions obtaining in China the price of prepared opium can

probably be increased in proportion.

3. The Macao Farmer is at present selling at 84.80 per tael

for local consumption and £3.00 per tael for export.

4. No figures are available for the cost of producing pre-

-pared opium, so I propose to use the method adopted by the Hong

-kong Farmer. One cheat of raw opium ought to produce 1,100 taels

of prepared opium. In estimating the cost of production the Hong-

-kong Farmer estimates 1 chest at 1,000 taels and assumes that by

using this figure he fully covers the expense of boiling. That is

to say that the cost of production is about 10 per centum of the

cost of raw opium. In Hacao the expenses such as rent etc., are

probably less but the quantity boiled is less. The figure does not

include the cost of a preventive staff.

5. On the above assumptions we get:-

(a). Local Consumption.

Actual cost of 135 chests of raw opium --135 x 81,200 ×

amount of prepared 135,000 taels.

$192,000.

At 1,000 taels per chest

opium produced

cost per tael = 8192/135

Actual amount produced = 148,500

at a total cost of

8148,500 x 192 /

135

This is sold at 84.80 per tael.

.. Profit per annum on local consumption

= $148,500 (4.80

( 100

192).. 8592,800. 130)

(b)