CO129-425 - Governor Sir May - 1915 [10-12] — Page 524

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+ CONFIDANTILL.

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C.O.

3417 513

REGE? JAN 16

GOVERNMENT HOUSE,

HONGKONG, 15th. December, 1915.

gir,

Gove

6440

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I have the honour to confirm my code telegram

of the 7th. instant, decode enclosed, in which I informed you that I and increused the price of prepared opium by one dollar per tuel with the object of restricting consumption, which since I wrote my Despatch covering the butimates for 1915 has materially increased.

The increase is due to the relation of restrictions on consumption of prepared opiw in the Kangtwie Province, with the result tiut the large population which is con- -stantly moving between the Province and the Colony and which did not smoke here as it could not supke in china now indulges here since it is no longer roa trained in China; and to the establishment there of a monopoly, as described in my Despatch Confidentiul of 30th. November, 1915, which is now selling its opium at the high 950 The

price of 15 per tael in Chinese Subcoin, which is equivalent to about 812 in Hongkong liotos in which the price here is fixed. I may point out in this connection that in paragraph 6 of the Superintendent of Imports and Exports' report, which formed the first enclosure in my Confidential Despatch of the 30th. November, the reference to the selling of opium, costing $12.50 a tael, at £15 less 20% a tool was intended by Mr. Hutchison as an eruple of the impracticability of the professed scheme of the Syndicate.

It is obvious that if that rate of $15 a tael

3.

is maintained there would be, after making due allowance for the

discount, a very great temptation to buy prepared opium at 810 per

THE RIGHT HONOURABLE

ANDRET BONAR LAW L-P..

&C..

20

tael