CO129-401 - Governor Sir May - 1913 [5-6] — Page 44

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(f). The number of chests of opium actually consumed in

the territory of Kwangchauwan during 1912 was 56.

In the Despatch of the 14th. of September, 1911, addressed to Sir John Jordan by Sir F. Lugard, copy of which

was enclosed in the latter's Despatch to you No. 327 of the 15th. 32412 September, 1911, a liberal estimate of the local consumption of

opiup at Kwangchauwan is put at 100 chests per annum. The figures furnished by the French Consul show that not much more than half this amount was consumed in 1912.

3.

Enquiries made by the Superintendent of Imports and Experts, principally from the Chinese Maritime Customs at Kwang- -chauwan, have elicited the following information:-

(1).

The local consumption is stated by French officials to be 50 chests per anmam only. It is considered by the Maritime Customs to be really considerably less. In explanation of the small consumption it is explained that the Chinese population

is very poc.

(2).

It is estimated that two-thirds of the raw

opium imported is smuggled in the raw state into China.

(3).

A considerable quantity of the opium boiled by

the Monopolist is smuggled through Hongkong and Macao to the United States. There is no evidence in Hongkong to support this statement but I have arranged that in future samples of prepared opium seized in the Philippines shall be sent here for identifica- -tion by analysis. I have obtained samples of the opium prepared in Kwongchauwan for the purposes of comparison.

It is evident that the supply of raw opium is largely in excess of the demand for the prepared drug. This fact is a menace to the success of a Government Opium Monopoly in Hangkong and a source of annoyance to this Government through whose territory some of the surplus supply is sure to be smuggled