(x)
In effect, smuggling of opium is carried on mainly by attempts at concealment in ordinary trading junks, by Chinese passengers in Foreign steamers trading to Treaty Ports, and by small boats which seek to evade the Cruisers and Customs Stations under cover of night.
The great increase which has taken place in the levy of Lekin and other taxes upon Foreign Opium on the Mainland has led, within the last two years, to an organised system of smuggling from the Colony to places at some considerable distance within the neighbouring province of Kwongtung. Bands of men are formed, to whom are given a certain number of balls or cakes of opium by dealers in this Colony, who undertake to pay the bearer of this opium so many dollars per ball or cake delivered at a named place in the interior. These bands, which are sometimes well armed, cross the harbour to the mainland, or gather together in British Kaulung, and endeavour either singly or in parties to evade the guards at the two or three passes in the mountains, which are alone practi- cable to the transit of merchandise. Collisions have been reported to the Police of Hongkong as having occurred at some distance in the interior between these bands of Smugglers and the Customs guards, with alleged loss of life. The state of the law, or the administration of it, in respect of the assembling of unauthorised armed bands on British territory obviously calls for the attention of the Executive.
SALT.
The preparation of Salt in China is a licensed monopoly, and none is prepared in the Colony. The principal Salt pans on the Coast are to the North East of Hongkong, and the distributing trade is a very large one. Numerous junks pass in contiguity to the waters of this Colony bound to Canton and the South West Coast. Many junks discharge their cargoes in this Harbour, both for the supply of the fishing trade of the Colony and for re-distribution. There is no doubt, according to the evidence before the Commission, that a good deal of the Salt landed here is smuggled to the neighbouring Mainland. Inspector CAMERON estimates the amount at 6,000 piculs a month. The high cost, (See Appendix, page 69) consequent upon an oppressive monopoly of such an important necessary of life, causes contraband trade in the article, and conflicts between Smugglers and the Monopolists to be common all over China. On the other hand it is shown that the Chinese authorities at Canton, by means of their Revenue Cruisers and their licensing agents within the Colony, tax the Salt which is supplied to the fishing vessels of the Colony. (See Appendix, Registrar General's report pages 69 to 73).
Salt smuggled from the Colony is conveyed for the most part in fast rowing boats, carrying about 300 piculs (under 20 tons) each, which seek to evade the Revenue Cruisers by leaving the harbour at night. These boats carry a larger crew than when engaged in ordinary trading, and the men are reported to be well supplied with fire arms. Their object however is flight, not fighting, except as a last resource to resist apprehen- sion, or to defend themselves against pirates, and they would be no match collectively for the Revenue Cruisers. The testimony of the Harbour Master's Department is conflicting as to heavily-armed junks leaving the Colony for the purpose of Salt smuggling. There is no evidence that sea-going junks are fitted out here for such a purpose, and Mr. CLERIHEW, the Inspector of Nuisances, formerly in the Chinese Customs Service, relates that "during the time he was quarter-master on board one of the Cruisers, from 1878 to 1880," and many seizures of Opium, Salt, Saltpetre, arms and ammunition were made from Hongkong junks of all sizes outside British waters, the junks did not appear to be