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devarment of Hong Tong mggest that, reviewing the position generally, it appears to be ressembly well established that;-
(A) There is an increased (and possibly increasing) demand for Goverment chandu, due to (1) a progressive increase in the Chinese population of the Colony, and (2) to restricted facilities for moggling due to the increasing success of the intensive preventive measures undertaken by the
Government.
(3) That if provision is not made for an increased supply of Government
chandu to be made available to meet this demand, muuggling will become so
profitable that it will flourish; preventive measures will be useless, more
opium will be smoked. that this will ramlt in harm to the consumer, harm to
the Goverment (in the increased 10-breaking ad flouting of its authority) and
harm to the dame of opium control.
(0) That in estimating the legitimate requirements of the Colony dus
allomance ought to be made for these factors; and that if this allemanne is
made, the Golomy's requirements for 1923 are about 25 abests per month, and that for future years 50 cheets per month is a reasonable mazirus figure.
(D) That the key to the situation is the restriction ex production at the seurodz granted which, the virtual suppression of consumption by a highly organised Government such as that of Hong long would be a comparatively simple
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