This article summarizes the reasons the colonial government in Hong Kong decided to make the internal retail trade in opium a major source of revenue. It also: explains the operation and enforcement of this revenue system; evaluates the fiscal performance of this revenue system; and considers its contemporary and lasting impact on the development of Hong Kong. The primary research focus is on the first 50 years of the operation of the system for it took almost this long for the revenue raising performance of the system finally to match the original, fund-raising expectations.postprin
