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effective blockade which prevents the smuggling of Opium on a much larger scale than at present takes place, is probably true, and it is also true that Chinese junks and boats in the Estuary of the Canton River, which do not promptly submit to be overhauled by the Cruisers, are chased and brought to for examination, if necessary, by being fired upon. The propinquity, however, of this Island to the mainland so far from being a cause of injury to the Chinese Customs Revenue, operates most advantageously for the collection of fiscal levies upon the foreign trade of the Southern Coast of the Empire. Were the Island situated at a greater distance from the mainland than it is, or did not exits in its present conditions as a free port under a foreign Government, the difficulties which would be placed in the way of the Chinese Authorities, when engaged in checking smuggling in Opium, would be much greater than they now are. Opium in that case would probably be shipped in Native vessels from more distant depôts, such as Singapore, Saigon or the French mediatized territory of Tonquin, to Chinese ports and places, and it would be impossible for the Revenue Cruisers to watch the entire line of their own Coast as effectively as they are now able to blockade this Island in which the trade is centred and controlled.
There is, therefore, no ground for Governor HENNESSY's statement that this Colony is engaged in chronic war with the neighbouring mainland, or for his implied imputation that the course of its trade is injurious to the Chinese fiscal revenue. On the contrary, the facts of the case show that the physical conditions of the Island of Hongkong not only afford the ready means by which the Chinese Government is enabled to protect its legitimate revenue, but also unfortunately place it in the power of the Authorities of the Province of Quangtung to surcharge the trade in foreing goods, carried on in Native vessels between Hongkong and the Southern ports of China, with additional taxation in excess of that authorized by the foreign treaties.
With the view to make a representation to H. M. Government in support of which it may bereafter be necessary to invite the good offices of your Committee, this Chamber is now engaged in an investigation into the facts, so far as they can be ascertained, relating to this alleged surcharge of duties upon the Colonial Trade, for the collection of which, as well as for the prevention of an illicit traffic in Opium, there is reason to believe the blockade of this Island by Chinese Revenue Cruisers is maintained.
So much as regards the general condition of the Trade of the Colony which evidence the grave misre- presentations contained in the Nottingham address, but in order to show conclusively, by official returns on matters of fact, the groundlessness of the specific accusations made by Sir JOHN POPE HENNESSY, your attention is invited to the annexed copies of correspondence, with its enclosures, between the Colonial Government and the Committee of this Chamber.
In response to the request of the Committee, the Acting Colonial Secretary under the direction of His Excellency the Administrator has furnished the Chamber with the following documents, viz.:-
1. Extract from a Report by the Colonial Teasurer and Registrar General upon the Opium Trade of
the Colony.
2. Return from the Harbour Master, showing the character of the native vessels engaged in Opium Smuggling and the number of cases of alleged smuggling brought before the Marine Court since April, 1877.
3. Return from the Captain Superintendent of Police, showing the total number of attacks and sei- zures made by Customs Revenue Cruisers in the neighbourhood of the Colony and reported to the Police since 1st January, 1877.
The Colonial Treasurer's Report on the Opium Trade for 1876, confirms the figures of the approximate estimate made by this Chamber from independent sources and given above, as to the probable quantity of Opium smuggled into China from this Colony.
The Harbour Master's Return shows that there is no special class of vessels fitted out in the Colony and heavily armed for the purpose of Opium smuggling, as alleged by Governor HENNESSY, and in the 5 cases cited in the report which comprise the whole number brought before the Marine Court in the course of five years, it will be seen that the quantity of Opium found in the vessels charged with being engaged in
Published at pages 64 to 75, and
89 & 92 of Appendix,