CO129-470 - Public Offices - 1921 — Page 480

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to the Government of Hongkong at a fixed price for five

years, from January 1st. 1921, is correct. Under the

new agreement, the supply of raw opium from India to

Hongkong is now reduced to a maximum of ten chests a month,

which is less than one-fourth of the amount which the colony

was entitled to import prior to the present year.

With regard to the apprehensions of the Chinese

Government lest this continued supply of opium should

encourage lawless elements to smuggle it into the adjoining

territory under Chinese jurisdiction, all the information

in the possession of His Majesty's Government goes to show

that, owing to the great increase of production of opium

in China the price of opium originating in that country is

now reduced to about one-sixth of the price of the drug

maintained inside the territory of Hongkong under the

existing system of strict and effective Government control,

with the inevitable result that the smuggling of opium

from the dear market prevailing in Hongkong to the cheap

market obtaining in China has now been reduced to

infinitesimal proportions. This statement is amply borne

out by the official statistics of the quantities of smuggled opium confiscated in transit between Hongkong and other territories during the period from January 1st. to

July 20th., 1920. Out of a total amount of forty four thousand, nine hundred and ninety three taels so seized, four thousand, six hundred and seven taels were raw Chinese

oplum; no less than twenty nine thousand, five hundred

and/

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