E.
327
!
The early part
over from Hong Kong to Liverpool to organise a new Opium business? of 1914 was the period when the Hong Kong Government took over the local Opium Monopoly, and thereafter the smuggling on Blue Funnels and Bens developed into the large operations of the last two years. Kwok Tze Shan's (or Jack A Tai's) Ietter of 20th April, 1914–Serial 71-suggests the opening of business, and the coincidence of dates with the establishment of the Government Monopoly is significant,
The foregoing covers, we think, the leading points concerning the procuring ring now disclosed and probably chiefly concerned in traffic by Blue Funnels. The correspondence suggests that others are concerned in the traffic, vide the warning that Opium should not be given to anyone except with the particular Agent's personal authority, and that the stuif should not be sold or passed to others at destination. We have no doubt that others are concerned in the traffic, and it seems possible that Yuehn King Chin sells to others than Lou Pou Kee, even for the Far East. That is a point requiring elucidation: it would be enlightening to discover whether or not Yuehn King Chin has a separate connection, to that with Lou Pou Kee, as a general Opium merchant trading under cover of dealing in harmless Chinese goods. It may naturally be concluded that there is just the one feature of this business as we know it on our steamers, but it should not be overlooked that behind the smuggling features that appear on the surface there is the past Opium trade with sub- stantial merchant interests, and that these interests do not die easily. It is not likely that the Chinese regard the present clandestine traffic as a crime in any degree, rather that the trade has taken on unfortunate circumstances which lead to certain risks not involved hitherto, but incidentally higher profits. We only come in contact with the procuring rings: behind them are the native financiers and traders who recognise that they must not appear and are able to devise such methods that their tracks are entirely covered and admittedly cannot be traced by the local Government and Police authorities. This means that if we quash one procuring ring others will probably arise; that in itself, however, is no reason why we should not try to break up an organisation in all its parts whenever it becomes practicable, with the aim of adding to deterrent influences, provided we are satisfied it will not injure us in other directions, but we have grave doubts whether it is practicable so long as the steamers carry Chinese crews. We understand that the worst we could effect with Lou Pou Kee is banishment from the Colony, but with a man of his very marked influence we doubt if that would have any material effect on his Opium business unless he could be excluded from China and other British Colonies also. As for Jack A Tai, we can break away from him and it may be advisable to do so in any circumstances, as we are doing in part already by trying Ningpo crews and leaving Indra ship's crews in the hands of Wang Kee. As an indication of the difficulties we have to contend with in making changes, we may instance that we find Wang Kee serves the Bens with crews, and the Bens have been the next heaviest carriers of Opium detected in Hong Kong; moreover wo learn that Kwok To with the samo surname as Jack A Tai is manager of Wang Kee, which suggests they are connected, although they are not reputed to bo of the same family as far as we can yet learn. The firemen and sailors, of course, may put up at any of the various boarding houses, and nithough engaged through one ship's compradore may still be open to bribery through another compradore whose influence we are trying to break away from.
Shanghai suggest that Mr. Mackay personally lays the whole correspondence he has received before the Commissionor of Customs, and put upon him the responsibility of estab lishing identities and filling up gaps, and maintaining the strictest confidence. If the Commissioner will co-operate to this extent it seems the desirable course to take, and we shall cable you on this and what we have to recommend as regards Hong Kong after further consideration of information we are guardedly gleaning.
Yours faithfully,
(Signed) BUTTERFIELD & SWIRE. P.S.-We confirm our telegram of the 15th inst., reading as follows:-" Letter sixteenth
December documents received reporting shortly."
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