CONFIDENTIAL
HKB
177
CONFIDENTIAL
FM HONG KONG
TO IMMEDIATE FCO
TELNO 1626
OF 250945Z MAY 90
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
5
YOUR TELNO 422: INCIDENT ON 3 MAY IN HONG KONG WATERS
18
154121
MDHIAN 2139
►
1 THE POLITICAL ADVISER MET JI SHAOXIANG OF NCNA ON 25 MAY.
OUTLINED TO HIM A NUMBER OF MEASURES (WHICH HAVE NOW BEEN ANNOUNCED PUBLICLY THIS AFTERNOON) TO CONTROL SMUGGLING FROM HONG KONG INTO
CHINA:
HE
-
A LARGE PROPORTION OF GOODS SMUGGLED ARE DUTY-FREE CIGARETTES. UPTO NOW THEY HAVE BEEN DRAWN LEGALLY FROM CUSTOMS BOND BY EXPORTERS. BUT MANY HAVE SUBSEQUENTLY BEEN TRANSFERRED FROM SMALL TRADING VESSELS TO SPEEDBOATS AND SMUGGLED INTO CHINA. IN FUTURE ONLY SHIPPERS USING VESSELS OF MORE THAN 250 TONS WILL BE ALLOWED
TO DRAW DUTY-FREE STOCKS UNLESS THEY CAN SHOW THE CIGARETTES ARE
DESTINED FOR SOMEWHERE OTHER THAN CHINA. THIS SHOULD CUT OFF THE SUPPLY OF DUTY-FREE CIGARETTES TO SMUGGLERS AND REMOVE MUCH OF
THE PROFIT OF THE TRADE.
MUCH OF THE SMUGGLING IS DONE BY SPEEDBOATS. FROM NOW ON MEASURES
WILL BE INFORCE TO LIMIT THE SIZE OF ENGINES AND FUEL TANKS
PERMITTED ON THESE BOATS. THIS WILL LIMIT THEIR SPEED AND RANGE.
THOSE NOT OBSERVING THESE CONDITIONS WILL HAVE THEIR LICENCES
WITHDRAWN. THE MEASURES WILL APPLY TO ALL NEW VESSELS AND TO
EXISTING VESSELS WHEN THEIR LICENCES COME UP FOR ANNUAL RENEWAL.
- AS A FURTHER LICENSING CONDITION, A PROHIBITION WILL NOW BE INTRODUCED ON HIGH-SPEED VESSELS BEING USED BETWEEN SUNSET AND SUNRISE.
2. JI SHAOXIANG WAS CLEARLY PLEASED WITH THESE MEASURES. HE SAID
THAT HE PERSONALLY APPRECIATED THEM AND THOUGHT THEM GOOD. HE WOULD
INFORM GUANGDONG AND PEKING.
3. EHRMAN ENQUIRED AGAIN ABOUT WHEN A MEETING COULD BE HELD WITH
GUANGDONG TO RESOLVE THE 3 MAY INCIDENT. HE THEN TOOK THE OPPORTUNITY TO GO OVER AGAIN THE POINTS IN THE SPEAKING NOTE SENT
TO PEKING COUR TELNO 1641) EMPHASISING THAT THE 5 CREW WERE TOTALLY
1
PAGE
CONFIDENTIAL