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has a somewhat larger population; whereas the
total population of the whole of this Colony is
less than that of a single town in the Xuang-tung
province, I mean its capital, Canton. Moreover,
there is in normal times a daily ebb and flow of
many thousands of Chinese,
among who are probably
between Hong Kong and
hundreds of opium addicts,
Canton, while in abnormal times there is a sauve qui
peut from Canton to Hong Kong, which may add
(as recently happened) some twenty thousand souls
to the Colony's population in a couple of weeks.
Under such conditions it is quite impossible for
Hong Kong to suppress, or even to affect considerable
reduction in, the consumption of opium by its
inhabitants, while the Canton authorities encourage
both the production and the consumption of opium and
take no steps whatever to check the export of prepared
and raw opium from Kuang-tung into this colony.
All that is practicable in Hong Kong, until the
production and consumption of opium in China are
effectively controlled with a view to eventual
suppression, is to keep the price high enough to
make opium a luxury and yet not so high as further
to encourage smuggling.
6. Another important factor in the local
situation is the opium policy of the Governzent of
India. In a letter, dated the 14th June, 1726.
this Government was informed by the Finance
Department (Central Revenues), Simla, that the
Government
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