CO129-396 - Public Offices - 1912 — Page 435

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This reduction resulted in a loss of revenue for a-

cao of 182,250 patacas (416,570) from the monopoly.

In spite of this serious loss the Government of the

Republic are prepared to agree, in principle, to a further

lowering of the limit to be fixed for the adjudication of

the contract in 1913; to modify the regulations on this

subject, in view of the decisions of the International Con- ference at the Lague; to impose heavier fines for breaches

of these regulations; and to modify the arrangements for

inspection, which duty would no longer le entrusted to the Fort Captaincies, but would be handed over entirely to the

Finance Department, in order to prevent 'illegal trading in

opius.

The Government would likewise be inclined to approxi-

mate its limit to that adopted by Hong Kong, perhaps fixing

it at 720 cases, without drawing any distinction as to what is intended for export and what for local consumption.but

a doubt arises which it would be desirable to clear up. The wording of clause 2 of the liong Long contract tacitly ad- mits the possibility of the limit being exceeded by special

authorisation of the Governor of the Jolony. Perhaps a case

of this sort may have occured during the period of the last contract? That fact is that, whilst the income from the monopoly in Macao sank from 334,000 patacas (430,360) to

148,750 (213,520) with a limit of 2000 cases, in Hong Kong

with a limit of only 900 cases the income from the mono- poly rose to 1,200,000 patacas (£109,090). Does this dif-

ference arise from the above provision which does not ex-

ist in lacao?

Portugal is prepared to co-operate sincerely in the Eradual restriction of the opium trade in Lacao, but the

British Covernment will easily understand that they are

anxious

Feat