CO129-411 - Governor Sir May - 1914 [5-7] — Page 423

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NO CONFIDENTIAL.

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26089

REGE 17 JUL 14)

GOVERNMENT HOUSE.

HONGKONG.

23rd June, 1914.

413

sir,

In reply to your Confidential Despatch of the

8th ultimo, I have the honour to inform you that the practice of

selling prepared opium at a lower price in the Northern District

of the New Territories obtained under the former Opium Ferms.

The original reason for the difference was apparently to obviate

smuggling from Chinese Territory into the adjoining Northern

District.

This danger no longer exists and I have under

consideration the raising of the prices in the Northern District

to the level adopted in Hongkong. But as all prices for pre-

pared opium were raised on the 23rd of March last, I consider

that it would be premature to make the change just at present,

for the population in the District in question is poor, and a too

rapid rise in the price of opium would probably induce no

immediate reduction of consumption but greater expenditure on

opium and undesirable economies in other directions. It has not

been found that the difference in price induces smuggling of

opium from this District into Hongkong.

2.

I take this opportunity of informing you that I

have recently made a general reduction in the price of the 3rd quality of opium from 15 to 12 cents. This opium is made from Persian Opium and competes with dross opium than which it is purer

It

THE RIGHT HONOURABLE

LEWIS HARCOURT, M.P.,

&C.

30.

&c.