A.—2

6

was made a Government monopoly in 1910. Retail sale is only permitted at licensed shops or licensed public smoking-rooms, and. is subject to stringent regulations. Prepared opium may not be sold to any one but an adult male. Though public smoking-rooms have not been entirely abolished, the number has been gradually reduced from 503 (in 1909) to 211. Successive increases in tho price* of chandu have also been made, and. the wholesale price, which in 1910 was $3 a tael, is now $12. The effect of these measures was a continuous reduction in the amount of prepared opium, sold, and also in the amount consumed per head of the population up to 1917. The decrease from 1911 to 1917 amounted to 355 per cent. The years 1918 to 1920, however, have shown an increase, which may be due in part to increased wages of labourers. As in. the case of Hong Kong, tho Government, in pursuing its policy of increasing the price of opium, has to have regard to the danger of smuggling both by sea and from China (Fukion). The two principal settlements, with the two chief ports, are in the fairway of all seaborne traffic between the East and West; there is also a sparsely inhabited seaboard to the other portions of the colony ; there is communication by land with Siam ; and the population is to a large extent migratory. It is feared that if the measures taken are too restrictive smuggling will be increased and trade in morphine and. cocaine, which caused much evil in 1904-10, may bo revived. At the beginning of 1920 an attempt was made to reduce consumption by a system of rationing, under which retailers were supplied with only 90 per cent, of their former average purchases. Great dissatisfaction was produced, and by the end of April it was found necessary to abandon the attempt. Malay Slates. —All supplies of prepared opium are obtained from the Government factory, Singapore, and the general regulations are similar to those in force in tho Straits Settlements. Sale is allowed through licensed persons to Chinese only. Consumption has been reduced (1) by successive increases in the prices charged for chandu throughout Malaya, and (2) in the Federated Malay States by a reduction of the number of licensed shops from over seven hundred prior to the introduction of the monopoly system to 288 in 1919. In the Federated Malay States the sales to licensed retailers had decreased by 30 per cent, between 1911 and 1918, although latterly the consumption, has remained fairly constant. It is now the policy of the Government to replace tho private shops for tho sale of chandu for consumption off the premises by Government shops, in order to take the sale of chandu out of the hands of persons financially interested in fostering the trade. British North Borneo. —With a view to controlling and restricting tho consumption of opium in the territory, the trade, which was formerly left to private individuals, has been taken by the Government into its own hands with beneficial results. Consumption of opium, is absolutely limited to Chinese. Certain, selected traders in each district which Chinese inhabit arc licensed to requisition on the central store for an amount proportionate to the number of Chinese male adults in the district. The annual consumption of prepared opium per head of the adult male Chinese population during the years 1919, 1920, and 1921 was 8| oz., 1\ oz., and oz. respectively. The price charged has been advanced at intervals contemporaneously with similar increases in the Straits Settlements, and is now $9-50 per tael. Ceylon. —Great progress has been made since 1910 in reducing the consumption of prepared opium. Import and sale have been brought under the direct control of the Government. Opium may only be sold by authorized persons, and a system of registration of opium-consumers has been established. The price has been raised from time to time, and tho consumption of both kinds is decreasing. The number of consumers has been reduced from twenty-four thousand in 1910 to twelve thousand in 1920, and. the allowances have been diminished. Save in very exceptional cases, fresh persons are not placed on the register. Considerable quantities of opium and opium products are, however, smuggled into Ceylon and used by the Natives. Mauritius. —Opium-smoking until recently existed on a small scale in Mauritius, but in February of this year it was forbidden by law. Wei-hai-wei. —Permits to smoke opium are issued only to confirmed smokers by a Government Medical Officer. There are no opium-divans. The number of registered opium-smokers in 1920 was 58, and, as no fresh, permits are being issued, the suppression of the habit will proceed pari passu with the death of the present smokers. In accordance with the announcement made by Lord Balfour at Washington, Wei-hai-wei will shortly bo returned to China, and British responsibility will then, of course, cease. It will be seen from the foregoing recital that a steady and continuous effort has been made during the last ten years to reduce the practice of opium-smoking in British colonies and protectorates where it has been prevalent. The general policy has been to exercise a close control over the trade to bring tho average consumption within moderate limits and, as far as possible, to prevent the illicit introduction of supplies. Further than this it does not seem possible to go as long as production and distribution go unchecked in the neighbouring countries. Complete suppression can only be brought about by simultaneous measures in all the countries concerned. Home Office, November, 1922.

No. 5. New Zealand, Dominions No. 33. My Lord, — Downing Street, 23rcl January, 1923. I have the honour to transmit to Your Excellency, for the information of your Ministers, copies of a memorandum entitled " Begulations for Travellers to Germany," which has been drawn up in accordance with the latest information supplied by the German Government.