(viii)
(c.) Smuggling from this Colony into China is carried on wholly by Chinese,
and is with inconsiderable exceptions limited to,
1st, Opium.
2nd, Salt.
3rd, Saltpetre, Sulphur and Munitions of War.
The difficulty of evading the numerous Revenue Stations by the transport across country of bulky goods, otherwise than along usual and guarded routes, and the effective "blockade," which the geographical position of Hongkong enables the Chinese authorities to maintain, both combine to render the smuggling of general merchandise unremunerative.
OPIUM.
The whole of the Opium imported into China, with the exception of a few chests from Asiatic Turkey, comes from India and Persia, and, for the most part, passes through Hongkong which is a free port without Custom House of any sort. There is therefore no means of obtaining from the local Government Statistics of cargo imported or exported.
However, the number of piculs of Opium imported as given by the Chamber of Commerce for the last 5 years, and confirmed by the Chinese Customs Trade Reports is approximately as follows:-
Malwa
Patna.
Benares.
Other Sorts.
Total.
1878,
..38,930
34,447
16,804
4,718
94,899
1879, ....
.42,251
36.722
21,990
7,007
107,970
1880,
....36,449
32,699
22,004
5,687
96,839
1881,
.......
....37,552
31,499
21,708
7,797
98,556
1882,
...29,779
29,536
20,210
6,040
85,565
and it will be seen from the detailed Returns (Appendix, pages 62 & 63) that the quantity entered through the Foreign Custom Houses at the Treaty Ports in 1882, amounted to 65,709 piculs, leaving a balance of 19,856 piculs at Hongkong, to be accounted for.
It is not to be supposed that all the Opium thus left at Hongkong is smuggled into China. A considerable portion goes to the Portuguese settlement of Macao, but by far the larger portion is taken away to non-Treaty Ports by Chinese trading junks, which obtain passes at the local Customs Stations of Ch'éungchau, Kapshuimún and Fatt'auchau, and pay legal dues. These Stations which of course are not on British territory are at the East and West entrances of the Harbour, and were established in 1868 for the collection of Lekin, or extra tariff import duty, generally called "War-tax;" but were subsequently used as Branch Stations of the regular Native Customs as well. Not depending, however, upon the proximity of these Stations, the Chinese authorities have agents in this Colony, who issue passes to trading junks, giving, it would appear, an abatement on "regular duty," "Lekin," and "Coast defence taxes.” (See Appendix, pages 64 to 66.) These passes are respected by the Cruisers, and are recognised by the district Custom Houses at the ports and places to which the junks are bound.
It will be seen from the evidence of Mr. BELILIOS (see Appendix pages 37 to 39), and the return of Mr. WONG (see Appendix, pages 67 & 68) that the dues on Opium have increased enormously since 1879; and, as, according to Mr. WONG's return, the charges on Opium passed through the Native Customs are 25 per cent. less than on Opium shipped