CO129-416 - Public Offices - 1914 — Page 7

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supposed that some two-thirds of the raw

opium imported is smuggled in the raw

state into China and that a considerable

quantity of the opium boiled by the monopo

lists is smuggled through Hongkong or

Macao into the United States.

It is clear that the supply of raw

Opium is largely in excess of the demand

for the prepared drug in Kwangchaiwan,

And

this fuct is a menace to the success of a

Government monopoly of opium in Hongkong

and may prove a source of annoyance to the

Hongkong Government through whose territory

some of the surplus supply is sure to be

snuggled to foreign countries.

These facts have already been

pointed out to the French Minister at

Peking by "r. Alston, who urged upon him

the importance of regulating the traffic

with greater regard to the requirements

of Kwangchauwan and suggested the desir-

ability of concluding an agreement on the

subject simila" to the Mucuo Agreement

of 1913.

Monsieur Conty however appeared

disinclined to take up the matter energeti-

cally with the result that up to the

present little progress has been made.

I should be glad therefore if you

would take an early opportunity of

approaching the French Government on the

subject. You should explain the reasons

on account of which His Majesty's Govern-

ment would be glad to see a stricter

supervision of the Kwangchauwan traffic,

and you should propose, as the most satis-

factory means of attaining this end, the

conclusion of an agreement between the

French Government and His Majesty's

Government similar to that already con-

cluded between Portugal and this country

for the regulation of the "acao Opium trade

For convenience of reference I enclose

herewith two copies of the 'acao Agreement.

of