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is based on irrefutable evidence, and reports from Hong Kong state that during the two months of July and August of this year alone uncertificatod Indian opium was imported into Macao to the amount of no less than 500 chests.
I submit that the action of the Macao Government, obviously dictated by no desire to assist the prohibition of opium, is highly detrimental to the welfare of the Chinese people, and contrary to the spirit of the opium agreement entered into between the Chinese and British Governments in May of last year. The quantity of Indian opium imported into Macao is, besides, most assuredly in excess of the legitimate requirements of that place.
My Ministry have instructed the Chinese representative in Portugal to make strong representations to the Portuguese Government with regard to the above points, and I now have the honour to request your Excellency to bring the same to the notice of His Majesty's Government, in order that they too may urge the Portuguese Govern- ment to instruct the Macao authorities strictly to prevent uncertificated Indian opium from finding its way into China through Macao, or may take preventive measures in India itself, or may adopt any other satisfactory method of dealing with the matter.
I shall be most grateful for any action which His Majesty's Government may deem it advisable to take on the above lines, and in addressing your Excellency accordingly, I avail, &c.
(Seal of Wai-chiao Pu.)
Sir,
Enclosure 2 in No. 1.
Commissioner of Customs, Lappa, to the Inspector-General.
Custom-house, Lappa, July 18, 1912.
I HAVE the honour to acknowledge the receipt of your despatch No. 1002: opium trade in Macao; information concerning called for; in which was enclosed a copy of Shui-wn Chn's despatch No. 2733 forwarding a list of thirteen questions to be answered.
I now beg to reply to these questions as follows:--
1. The quantity of certificated Indian opium imported into Macao between the 1st January and 30th June, 1912, was 171 chests, of which 141 chests were imported by licensed merchants for re-export to China after payment of duty and li-kin, and 30 chests were imported by the opium farmer for boiling. In addition, the farmer imported from Singapore and Calcutta 525 chests of uncertificated Indian opium. Thus, during the first balf of the current year, the total import of Indian opium into Macao amounted to 696 chests, the licensed opium merchauts importing 141 chests, and the farmer 555 chests.
2. The total amount of Indian opium arriving in Macao between the 1st January and the 30th June, 1911, was 685 chests, all coming from Hong Kong. Of this number the licensed merchants imported 467 chests, and the farmer 218 chests only.
A comparison of the figures for these two periods is instructive. The total import is very nearly the same, which would seem to imply that the demand was practically nuchanged. In 1911, to meet the demand from China, licensed merchants required 467 chests, and to meet the same demand in 1912 they imported only 141 chests. That the farmer in 1912 brought in 555 chests, against only 218 in the previous year, leads one to suspect that he was supplementing the merchants' short import by supplying them from his stock of uncertificated opium.
3. Uncertificated Indian opium was first imported into Macao from Singapore on the 17th November, 1911, and up to the date of this despatch the total arrivals from the Straits and from Calcutta direct have amounted to 1,035 chests.
Special regulations (copy enclosed*) were enacted with the object of keeping this uncertificated opium under Government control.
4. No Turkish or Persian opium has been imported here since 1900.
5. The certificated Indian opium arrives here from Hong Kong, the uncertificated
opium comes either from Singapore, or direct from Calcutta.
Both kinds of opium are landed under a permit from the Macao Superintendent of Opium, who reports the arrival to this office. Only Bengal opion is imported, the bulk being Patna, with a few chests annually of Benares. Each chest contains forty balls, and weighs about 1-20 piculs.
* Not printed.
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6. The opium farmer's three years' contract with the Macao Government (1st August, 1910, to 31st July, 1913) allows him to boil and sell for local consumption 500 chests the first year, 450 chests the second year, and 405 chests the third year.
After examining the figures supplied by the Macao Superintendent of Opinn for the five years euded the 31st December, 1911, I find that the average of the reported boilings for local consumption only comes to about 300 chests a-year. Even this figure is in excess of the real requirements of the colony, as from my own observation and from the enquiries I have instituted, I am convinced that the legitimate demand never exceeds 250 chests a-year.
The certificated opium imported by the licensed opium merchauts all pays duty and li-kin at this office, is duly labelled, and is re-exported into China. The balance, that is to say, all the opium, whether certificated or uncertificated, brought in by the farmer, is imported with the ostensible object of being boiled locally. The sergeants or inspectors of water police, a poorly paid body of men, are appointed in turn to supervise the boiling of opium by the farmer. They are present when the chests are opened and the balls broken and thrown into the pans, and these boilings are daily reported to this office by the superintendent of opium as so many balls boiled for local consumption, and so many boiled for ultimate exportation to Mexico.
The opium farmer is reported to have already boiled for local consumption the full amount that he is entitled to boil during this, the second year, of his contract (1st August, 1911, to 31st July, 1912), and the amount 450 chests is, I am convinced, quite 200 chests more than he can dispose of for legitimate local consumption. Between the 1st January and the 30th June of this year, he is also reported to have boiled 15,000 balls for export, of which he is reported to have exported 5,000 balls only, leaving a balance of 10,000 balls, equal to 250 chests. The farmer should therefore have the boiled equivalent of 450 chests of crude opium stored in his godowns. The control of the opium farmer and his godowns is in the hands of the Macao Government, and I have no means of verifying the figures supplied me, or of checking the balance, but it seems hardly possible that a stock of such enormous value should be allowed to lie idle. If this balance is not in the farmer's store, then, in view of the great inducement to smuggle offered by the difference in price between the certificated and uncertificated drug, and by the present high rate of duty, it seems reasonable to presume that whatever is missing from the farmer's stock has found its way clandestinely into China as boiled or semi-boiled opium, or even in its crade
form.
7. The opium farmer pays the (Macao Government 148,750 dollars per annum, and the licensed dealers pay 10 cents a ball for all raw opium exported. This tax amounted last year to no more than 2,632 dollars, and this year it promises to be still less. There are six licensed opium dealers, and the Banco Nacional Ultramarino also takes out a licence to enable it to hold the uncertificated opium against which it has advanced money (vide Enclosure 1, "Macao Ordinance No. 243 of 1911," article 1). Each of these seven licence-holders pay an annual licence fee of 33 dols. 60 c. to the Macao Government. The consumption is controlled by the farmer, and the Government derives no revenue directly from it. The total receipts from the opium trade at the present time are, in round numbers, 151,000 dollars a-year.
8. The present opium farmer holds a three years' contract, extendable for two years more if the Lisbon Government consents. The contract proper expires on the 31st July, 1913, and it is generally supposed that the farmer is not likely to get the extension except at a considerable advance in price.
9. I enclose a copy (in Chinese and Portuguese) of Ordinance No. 21 of 1910,* publishing regulations for the control of the opium trade, and of the preparation and consumption of the drug, and also of Ordinance No. 78 of the same year, which slightly modifies the earlier ordinance. Article 7 provides that the number of opium shops and opium divans shall be fixed by the Government. Accordingly, in addition to the six merchants licensed by the Government to deal in raw opium, the opium farmer is authorised to issue licences to not more than forty shops for the sale of prepared opium. From each of these the opium farmer holds a deposit of 200 dollars as a guarantee that all supplies will be purchased from him. The number of opium divaus that the opium farmer is authorised to license is also forty, but this limit does not appear to be very strictly enforced. I am unable to give the exact number of divans licensed, but am told there are about five intended for higher-class smokers, about forty for lower-class people, and some five opium deus for poor folk who smoke opium dross. I understand that under a clause in the opium farmer's contract the Government has the right to * Not printed.
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