CO129-418 - Public Offices & Others - 1914 — Page 39

COPY.

10/1972.

(F.1.)

Sir,

8th June, 1914.

36

With reference to Treasury letter 19691, dated 4th October, 1913, regarding the assessment to Military contribution of the net revenue derived from Opium by the Colony of Hong Kong, I am commanded by the Army Council to acquaint you for their Lordships' information that a letter on the subject has been received from the Colonial Office (No.44538 of 14th January, 1914), containing more detailed

73 information in regard to the proposal. It is understood

that a similar letter with copies of the enclosures has been

sent to the Treasury.

The establishment of the monopoly of the

manufacture of opium appears to have necessitated the

adoption by the Hong Kong Government of measures similar to

those instituted in the Straits Settlements, i.e. the

establishment of a Government Opium Factory and the creation

of a Preventive Service.

As regards the factory the Army Council are willing

to agree, as in the case of the Straits Settlements, to the

deduction from groas receipts of the working expenses

and maintenance charges, including interest on Capital

expenditure.

These deductions would include not only the items

referred to as "cost of manufacture" in Mr Severn's dispatch

The Secretary,

The Treasury.

to