CO129-425 - Governor Sir May - 1915 [10-12] — Page 373

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363

4. The facts are very different. I do not pretend to know full details but the following generalities may be safely laid down:-

(1). officially the smoking of opium has for some time past been practically prohibited in Kwangtung.

(2). Certain classes of people have during the last few years been allowed to smoke opium freely and certain merchants and officials have been able to make money thereby.

(3). Other classes of people have been smoking opium smuggled without officials or persons connected with them being able to

anything

make out of it.

(4). The present agreement is an attempt to get the smoking of opium officially recognised, and at the same time to make certain that all persons connected therewith shall pay toll, a proportion of which will go to the Government.

Very little has been published with regard to the composition of the syndicate, but the capital is said to be something as follows:-

Centon Government.

Merchants..

Lune Chai Kwong

Other Officials.

.$400,000

.800,000

..8400,000

.8400,000.

The only amount actually paid up is that of the merchants, but the profits are to be paid in the above proportion. A very large number of people have an interest in the syndicate.

6. The syndicate have purchased the 1,200 chests of certified opium from Hongkong. They boil and pack the opium in Canton. The sale of opium in each district is let to a sub-company who in their turn let it to the various villages. This has been done by tender. The syndicate sell at $15.00 a tael. Tenders have been asked from the various districts for the amount they require. The company from a particular distract undertaking to dispose of the largest quantity is given the monopoly. The syndicate allow the successful tenderer 2% on his pur- -chase, but he must purchase the full amount he tenders for. If he cạn purchase more he gets a bonus on his excess.

7.