CO129-447 - Governor Sir May - 1918 [1-3] — Page 334

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CONFIDENTIA

Sir,

328

5

REC

REGI MAY 18

GOVERNMENT HOUSE,

HONGKONG. 25th. February, 1918.

25198

14.

Gar 53155

With reference to my Confidential Despatch

of the 16th of June, 1914, I have the honour to inform you

that the Macao Opium Farm has recently been relet for a term of five years from 1st. September, 1918, for an amual fee of 86,676,000 the highest of nineteen tenders. The second highest tonder was over $6,000,000.

2.

I enclose an estimate by the Superintend- -ent of Imports and Exports of a year's working of the Farm on the basis of this enormous fee, and in explanation of Mr.

Tratman's estimate I have to remark that it is assumed that

the Farmer will be able to boil and sell the whole of the 240

chests allowed for export as well as the 260 allowed for local

consumption in spite of the fact that Mexico, hitherto a

legitimate foreign market for the Macao Farm's prepared opium

has been closed to the traffic by its om Government. The occurrences reported in my Confidential Despatch of the 22nd. September, 1916, indicate a method of covering the transfer- -ence of "Export" chests to so-called "local consumption".

The estimate of the working expenses is

as conservative as that of the rate of production per chest is liberal. The latter figure-1,400 taels per chest supplied by the new Syndicate itself. It exceeds the rate attained

3.

-

is

THE RIGHT HONOURABLE

WALTER LONG, M.P.,

&c..

&c.,

&c...