CO129-396 - Public Offices - 1912 — Page 403

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conditions of the contract unless he has not been accustomed to use more than 720 chests a-year.

As regards the suggestion that if Macao reduces her imports "Hong Kong will continue to take the best advantage of the situation," it is to be observed that the preparation of opium is vested in the farmer, and that since the 1st September, 1911, no raw Indian opium of any kind, except the amount permitted to the farmer under his contract, may be imported into Hong Kong unless it is covered by export permits from the Government of India to the effect that it has been declared for shipment to, or consumption in, China. In other words, so far as Indian opium is concerned only certificated opium, and such uncertificated opium as the farmer bas a right to import, can enter Hong Kong. The governor has proposed to prohibit the importation of raw Turkish opium, and to legislate so as to permit raw Persian opium to be imported only when it is to be re-exported to Formosa on

the requisition of the Japanese Government. A Bill for this purpose is now before the Secretary of State, and, if approved, will come into force on the 1st March, 1913. These restrictions on the importation of raw opium, and the fact that no prepared opium may be imported except by the farmer, who under his contract must reduce the amount of raw opium inported by an amount equivalent to such prepared opium, render it impossible for Hong Kong to gain anything by a reduction in Macao's importations.

As the Chinese population of Hong Kong numbers 414,000, while that of Macao is only some 60,000, and the amount of opium required for local consurap- tion in Hong Kong is only 45 chests a-month, it is somewhat surprising that Colonel d'Andrade should assert that Macao, with one-seventh of the population, should require 38 chests per month.

on our trade.

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of uncertified Bengal opium have been shipped for Macao. It is difficult to exaggerate the effect of the smuggling of cheap uncertified opium from Macao into China is having We understand that the British Government and the Hong Kong Government have been negotiating with the Portuguese Government and the Govern- ment of Macao for some time with the object of bringing the opium trade at Macao within legitimate limits, but so far from any relief being experienced, we have to record the above heaviest single shipment yet made to Macao. The price of certified for China is to-day 5,500 rupees, while uncertified is 1,850 rupees, the difference, 3,700 rupees (about 2,500 dollars, besides the evasion of the duty, and li-kin 650 dollars, altogether 3,150 dollars) is so heavy that smugglers find no difficulty in surmounting all obstacles in getting their opium into China on a wholesale scale.

We have the honour to request you to telegraph this heavy shipment of 300 chests uncertified for Macao to His Britannic Majesty's Minister at Peking and to the Foreign Office. We shall be pleased to defray the cost of the messages.

We have, &c.

(Confidential.)

Sir,

DAVID SASSOON ANd Co. (Limited). E. D. SASSOON AND Co.

Enclosure 5 in No. 1.

Governor Sir F. May to Mr. Harcourt.

Tome

adia

(Telegraphic.) P.

Enclosure 2 in No. 1.

Governor Sir F. May to Mr. Harcourt.

[Received October 15, 1912. WITH reference to your cypher telegram of 26th September, a statement of the local consumption at Macao is being sent by the Siberian railway route, leaving 16th October. It is impossible to estimate legitimate export to Mexico without knowledge of the legitimate requirements of that country. I suggest that the enquiry on the subject should be made by the Secretary of State for Foreign Affairs.

Hong Kong, August 23, 1912. I HAVE the honour to transmit the enclosed paraphrase of the telegram which

I sent in cypher in reply to your cypher telegram of the 13th July.

2. In explanation of my telegram I enclose two returns showing the import and export of raw Persian opium during the mouths January to June of this year. At the time of furnishing the returns there was a stock in the colony of raw Persian opium of 828 chests.

3. The export trade to Formosa is legitimate. If it is stopped the trade will be conducted from some other port. I have, therefore, suggested that steps should be taken to control the trade. The Bill forwarded in my confidential despatch of even date will effect that control. I have no objection to prohibiting the export of raw Persian opium to ports other than Formosan.

I have, &c.

Tar

Enclosure 3 in No. 1.

F. H. MAY.

(Confidential.) Sir,

Governor Sir F. May to Mr. Harcourt.

Hong Kong, September 4, 1912.

I HAVE the honour to confirm my telegram of the 31st August, which read as follows:-

"Sassoons report officially that more than 500 chests of opium, uncertified, have been shipped to Macao from India during the mouths July and August. Situation becoming serious.”

And with reference thereto to transmit the enclosed letter addressed to this Govern- ment by Messrs. David Sassoon and Co. (Limited) and Messrs. E. D. Sassoon and Co.

I have, &c.

F. H. MAY.

(Telegraphic.) P.

Enclosure 6 in No. I.

Governor Sir F. May to Mr. Harcourt.

[July 22, 1912.] REFERENCE your telegram 13th July. I have no objection to the import of Turkish opium being prohibited. There is a considerable amount of Persian opium exported to Formosa for use by the Japanese Government opium farm and for manufacture of morphine. I suggest that, to keep this legitimate trade, any Persian opium imported should be placed in licensed Government godowns, and that, on requisition of Japanese Government, export be permitted to Formosa, but to no other place. French legislation will be required to give effect to this, which could be passed early in August.

Enclosure 4 in No. 1.

Messrs. David and Messrs. E. D. Sassoon and Co. to Colonial Secretary, Hong Kong. Sir,

WE have the honour to inform you that we are in receipt of a telegraphic

Hong Kong, August 29, 1912. message from Calcutta to the effect that, by the steam-ship "Clara Jebsen," 300 chests

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