CO129-481 - Governor Sir Stubbs - 1923 [8-12] — Page 482

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General summary. The papers found show a firm organised

for the special purpose of dealing in arms and opium solely.

They find no difficulty in quickly finding regular customers for opium in Hongkong and Swatow and for arms in Toihow. They only meet with two eat backs during the year; in one an employee in Hoihow gets into prison in Hoihow over an arms deal and it costs $2,000 to secure his release, in the

other they apparently loose some opium in the seizure on

opium on 3. 3. "Yan On" in September. All expenses of safely getting the contraband ashore in Hongkong are under- taken for an inclusive fee per tael. Another contractor at

Hoihow ships it for a fixed fee per tael; members of the various crews convey it for a fixed fee per tael apparently also arranged by a contractor, who is probably connected with the firm and may be one of their employees, who takes on the contract. A fee paid to the military official secures the necessary guard of soldiers while the opium is on its way dow river from Yunnan to the seacoast where it is put on junks for Pakhoi or Hoihow; at Pakhoi the payment of a stamp duty of 5 cents per tael allows it to pass on the Hoihow; at Hoihow some payments were made but it is hard to say exactly what there are; constant mention is made of passing customs, but this carmet be the Maritime Customs unless these entries are in the nature of a bribe which from their small amount does not seem likely. All that can

be said is that opium passing through that port regularly paid some dues to someone. In Swatow suitable arrangements had to be made with the Opium Suppression Bureau, Either

the Bureau bought the opium outright or accepted it on consigment en a coumissien basis, or gave permission for ite sale on paying certain dues. In fact nowhere in China was there the slightest difficulty provided the various

dues were paid.

It is noteworthy as proving the great demand that existe for cheap illicit opium that a firm composed of

natives