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4.
In April, 1909, the American market was entirely closed owing to anti-opium legislation. The markets of Canada and Australia had been closed previously. As a result the Macao farm shut down and forfeited their security $100,000 to Goverment. (Vid. Imperial Chinese Customs Return 1909 Part II Vol. IV p. 643). The Macao Government asked for tenders for a new farm but the highest tender being $141,700 they rejected it and started a Government Opium Monopoly. The result is shown in the number of chests of raw opium actually boiled in Macao during that period:-
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1908....
1909.....
.2,176
181
1910........... 150.
5. During 1909/1910 the Macao Government found that they were not making as much out of the Farm as they had been offered in April, 1909.
They had only local consumption to rely on which could not exceed 130
chests per annum with a danger of smuggling from neighbouring ports.
They decided to ask for tenders for a new farm from August 1st., 1910.
The conditions laid down were at the moment in fact immaterial; there
appeared no possibility of the Farmer being able to use anything like
the quantity to which he was limited. The tenderers had nothing to rely
on. The price of raw opium had gone up considerably. In April, 1909,
the price of Patna Opium was 8945.00. In July, 1910, the price was
82,125.00 per chest. The only certain market was the local one, which
could not exceed 130 chests per annum. There was also the Mexican market,
but at that time Macao had no connection with it. The price tendered for
the farm must be taken as fairly reasonable.
6. During the period of this farm 1910-1913 the situation changed very completely. In the first place the Mexican Market developed considerably possibly some of the imports being destined for the American market. A considerable trade also sprang up from organised smuggling into American and Manila ports. Both these items widened the market for the liacao farm. A far greater effect was produced by the distinction between certified and un-certified opium after the agreement of 1911. The price of certified opium went up and that of uncertified opium dropped to half the value of the certified. The Macao Farmer could therefore
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