Sessional_Paper_1909 — Page 118

Effect on Hongkong

26

I will deal first with the statement that in Hongkong nothing has been done. of pledges England has already taken one very definite step. She has promised to reduce the

given.

Independent action by Hongkong. (a.) Aboli- tion of export

opium.

export of opium from India to China by one-tenth cach year for the next three years, and to continue that reduction annually if at the end of three years it is shown the China has proportionately reduced the production and the consumption of the drug.

*

This pledge seriously affects the interests of Hongkong which has long been the mart for the trade in raw opium 10 the Far East. The annual value of this trade is given as £5,312,645 in 1906 and £4,656,218 in 1907.† The profits made are similar to those secured in any other form of trade, and add to the general commercial business of the Port, by increas- ing freights, insurance (fire and marine), banking, warehousing, and handling. The extinction of the trade therefore would not merely be a loss to the merchants. engaged in it but also to the general business and prosperity of the Colony. No protest, however, has yet been heard from those chiefly interested, who have accepted loyally the policy of the Home and Indian Governments, but they claim- looking to the magnitude of the trade, and to the fact that it has existed for over 100 years, that ten years is the minimum time in which new interests can be created to replace those sacrificed, and any diminution of this period would im- pose too heavy a burden upon them. In this connection I venture to suggest that China should be required to reciprocate by abandoning her exports to Siam and Indo-China-both of which countries, like herself, have declared their desire to restrict the consumption of opium. (See below,-page 3.)

A second step has been taken in which Hongkong alone was concerned. In 1907 His Majesty's Government proposed to prohibit the exportation of prepared opium from Hongkong. Opium, under the Monopoly system in this Colony, of prepared can only be "prepared" for sale by the Farmer. It was perfectly legitimate for him to export to China under proper permit and declaration, though such export formed no part of his Monopoly rights. To prohibit it would be, however, a cur- tailment of the privileges under which his contract was signed, and might have involved a moral claim for compensation, but as China undertook to reciprocate and to check the smuggling of prepared opium into Hongkong the Farmer wil- lingly agreed and the trade was abolished. The Chinese Government expressed itself as very grateful for this action by the Hongkong Government,

(b.) Aboli- tion of smuggling.

Further assistance has been rendered to China by Hongkong through the consistent efforts of the Colony to prevent the smuggling of opium to the Main- land, though such smuggling was of course in no way injurious to the Colony itself, and if unchecked would add to the value of the Farm. No doubt the decrease in the rental value of the Farm in recent years is in part due to the cessation of smuggling.

It is generally believed that some ten years ago there was a very considerable smuggling trade to China, for judging by the figures of recent years it would seem probable that the Farmer at that time drew more opium from Bond than he required for his legitimate business. It is surmised that he sold the balance to smugglers, but the risks both to them and to himself were great, for the condi- tions of the Farm were designed to prevent smuggling and as experience was gained new precautions were from time to time taken. No one can lawfully possess prepared opium in sufficient quantities to smuggle unless procured from the Farmer for no one else may prepare opium. No one may have "loose opium (viz., anything less than an unbroken chest), except the Farmer, and every chest imported must be declared and a permit to store obtained. Quantities in the authorised stores are checked from time to time. A new permit must be got for removal from store for export, and for removal from one place to another, or for transhipment within the Colony. The Harbour Master furnishes the Master of every Ship carrying opium for export with a memorandum of particulars con- cerning such opium, and a copy of the mnemo. is sent to the Imperial Maritime Customs. (Ordinance 9 of 1887.)

+

The Farmer used formerly to have two establishments at the East and West of the Town and it was open to boats in Harbour, if found with loose opium on board, to declare that they were carrying it from one to the other, and had no

*Sir J. Jordan 7.12.07 in Ch

No. 1 (1908).

† Abstract of Chinese I.M. Customs Part 1A. p. 21.

Sir J. Jordan of 7.12.07 in China No. 1 (1908).