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I could sell privately our stock of confiscated Persien opium. They
said that they were working for the Canton syndicate and I think there
is little doubt that in a sense they were. In one case they undertook
to take the opium to Canton in a Chinese Gunboat.
12. A large quantity of opium has been purchased in India for
Kexico. The money for this has been paid by Hongkong Chinese interested
in the syndicate. Joseph Gould I believe effected the purchases in
Calcutta through M. Sassoon and both are known to me in connection withi
Persian opium smuggling. The opium has been shipped to Kobe and a
special steamer is being chartered to take the opium from there. I
understand that at some period the opium will be brought to this neigh-
-bourhood and transferred to Chinese Gunboats outside the waters of the
Colony. 250 chests are now on the sea and I believe there are 200 cheste already in Mexico for which Canton is the destination. Lee Hyson of the Yu Hing opium case is I believe at the back of this particular venture. 13. Attempts are being made to get Persian opium lying in the Colony into Kuangtung. The method to be employed is the old one of substitution. One such attempt was made recently, the opium being removed from E. D. Sassoon's go down to Kowloon Godowns for no other reason but to attempt substitution in the harbour. I issued a permit, but had the opium conveyed across the harbour in the Revenue Launch. The applicant accompanied the opium, but had no idea of how to proceed on arriving in Kowloon. I have also heard of negotiations for the purch:ee of a considerable quantity of opium from Hemazee. This is to go up to Canton, in a gunboat, though nominally the export is to London. Nemazee is demanding a price very considerably higher than that which he could get in London, but beyond this will have no share in the transaction.
14. It is said that supplies will also come from Kwongchauwan and
Macao,
and that smuggling from these places will have official protect- -ion. Some of the Macao Farm have share in the syndicate. The brokers for the Blue Funnel smuggling also expect assistance.
(Sd.) R. 0. Hutchison,
S.I.E.
26.11.15.
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