(9)

(3.) That Chinese goods sent to Hongkong are made to pay dues which are arbitrary and uncertain in amount, and always in excess of what is believed to be right, for no tariff is published or rule adhered to, and traders who have left one Province and paid all dues, are made to pay for entrance to Hongkong as if it were a port of China. This is shown in the case of Formosan traders.

(4.) The discussions between the Macao Chinese merchants and the Rice Commissioner Kwo, and the Hongkong Chinese merchants in 1876 shew that no fixity of rate is known, and that Hongkong trade is heavily handicapped. (See command paper 1628 of 1876, pages 17-18, and C.S.O. 1769 of 1876).

(5.) Goods sent to the Philippines, &c., are not so heavily taxed as the same

goods sent to Hongkong.

(6.) That cruisers flying the Chinese Customs Flag collect what is called the Harbour and Coast defence tax upon Opium, and when complaints are made to the Viceroy about their seizing junks in the harbour, he says they are the property of a monopolist of the tax and not under his control, e.g. Le-t'sap and four others. (See Mr. Consul HEWLETT's letters of 22nd June and 27th August, 1880, and list of seizures in one year in our waters. Appendix C. and C.).

(7.) Open levy in the Colony of all kinds of duty upon Opium. (See

Appendix D.).

(8.) Salt tax is levied on the fishermen of the Colony by a depôt in the Colony. Fishermen are required to take out warrants from the Salt farmers for the Salt which they take from Hongkong for salting fish at sea. A couple of Cruisers levy the tax in the waters of the Colony. This has been known since 1868, but was stopped by Sir R. G. MACDONNELL. This is a tax on the consumer of fish in the Colony. (See Registrar General's letters, Appendix E.)

(9.) The forfeiture of a junk and cargo if smuggled goods are found among passenger's luggage is against natural justice, if so smuggled without the knowledge or by connivance of the Master.

36. In the various proposals made by Sir THOMAS WADE, the essential one. was "the getting rid of the three Obnoxious Stations." He also again and again pointed out the importance of securing that "the jurisdiction of the Colony must not be invaded "by Cruisers pursuing and capturing junks within the waters of the Colony." As has been already stated, Sir THOMAS WADE gave as the reason for getting rid of the Native Stations, that the dues demanded of the junks by the Chinese collectors would be in excess of what would be just.

His scheme as finally matured would seem to stand thus:-

(1.) That the Chinese Government should shut up the three Stations at the entrance of the Harbour, and in their place establish a Branch of the Foreign Inspectorate near the Colony.

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