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 17th ultimo, to address you on the subject of the arrangements that are necessary for ensuring an increased supply of opium.

695. (9.) It is impossible not to regard with anxiety the possibility that in consequence of the deficiency of supply, the price next year will increase to such an extent as to furnish a dangerous stimulus to competition with the Indian drug in the China market. If, unfortunately, the crop of next season should be again deficient in quantity, the consequences to our opium revenue might be permanently disastrous.

696. (10.) It is true that a succession of favourable seasons may extricate the Government from its present difficulties, but His Excellency in Council considers the risk of depending upon such a fortunate contingency too great to be accepted. His Excellency in Council is therefore of opinion that the most energetic measures should be taken to increase the cultivation, with the least possible delay, to not less than 790,500 beegahs, as estimated by the Lieutenant Governor, or to 800,000 beegahs.

697. (11.) The Governor-General in Council observes that in the three years ending with 1861-62, the opium cultivation was extended from 435,000 to 832,000 beegahs. The provision of opium was — If it was possible then to bring about so immense an increase of cultivation and production in so short a time. His Excellency in Council thinks that it may be found practicable to effect the far smaller increase that is now required in a shorter time than now appears to be contemplated. It may not be too late to do something more than has been proposed even for the coming season.

698. (12.) Any increase of cultivation that can be obtained without excessive expenditure will apparently be a clear gain. The Government of India thinks that special inquiry should be made as to the possibility of profitably extending the cultivation of the poppy in the districts of the North-Western Provinces in which canal irrigation is available. It seems not impossible that in this way the precariousness of production which causes so much difficulty might to some extent be diminished.

These extracts make it abundantly evident that our Indian Government does not hold the calm, indifferent position of a superior authority laying a heavy tax upon an injurious article the consumption of which it cannot prevent; but, on the contrary, that it enters into the trade with the same eager desire for its increase that a private capitalist would feel. Who does not blush to think that a British Government should be engaged in the sordid pursuit of profits raised from Chinese Opium-smoking dens?