500.C1197/1192: Telegram

The Secretary of State to the Consul at Geneva (Bucknell)

56. For Fuller. Your 102, May 19, 3 p.m.79 Matter was referred to Nicholson who now reports from Hong Kong, June 6, that investigation slow, difficult and dangerous and he suggests that you not give publicity at present time to following information:

Armed Japanese vessel (name not given) about April 3, 1938 arrived Macao from Iran carrying over 2,000 cases opium. Eleven hundred [Page 560] of these cases were landed at Hak Sha Wan otherwise Black Sand Bay, suburb of Macao, and taken to Banco Nacional Ultra Marino for safekeeping. Arrangements to this end were made by local opium merchants with Governor Barbosa. The Governor furnished negro troops who escorted the shipment into Macao at night and is said to have been paid $400 per case for this service. Ten Chinese opium merchants cooperated with the Japanese in this transaction, the most important of whom is But Lui Kim (Cantonese dialect), head of troop under direction Pedro José Labor of Opium Monopoly and Director Economic Services. The other 1,000 cases in this cargo were discharged at Formosa.

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