CO129-471 - Public Offices - 1921 — Page 111

110

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15/10.}

BRITISH COMBULATË,

TAKSUI,

Sir:-

April 23rd, 1981.

With reference to Mili while I am in possession of no

prof other than what I consider strong circumstantial evidence

I feel no doubt but that nefarious traffic exists in coree-

tion with opium and that form which this takes is enuggling

of morphine into China through direct or indirect agency of

Hoshi Company. Certain higher officials must inevitably be

cognisant of this traffic and some are no doubt participating

in the profita. One of latter is undoubtedly #r. Kaku

director of Monopoly Bureau since not only do rumours freely

connect his name with this traffie but it would moreover be

impossible to carry on same on a large scale without his

comivande. In this connection I would recall his contention

to my predecessor that he could not be held responsible for

control of drug once it had passed out of hands of his Bureau.

As reported in my telegram of to-day Mr. Kaku has left

suddenly for Tokyo and it is alleged that he is implicated in

Opium scandal now under investigation. Rimours of his

impending resignation have been rife for some time and it is

now once more reported that he will not be returned to Formosa,

I have the honour, etc.,

(Signed.) G.H. Phipps.

Beauto. Mwanɗd 19 WHAT GI

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