(Secretary, Chamber of Commerce, to Colonial Secretary.)

407

HONGKONG GENERAL CHAMBER OF COMMERCE,

HONGKONG, 12th August, 1898.

SIR,-In view of the extension of territory acquired by the Convention of the 9th June, I am instructed by the Committee of this Chamber to lay before the Government their opinion on the question of the Chinese Imperial Maritime Customs vis-à-vis this Colony. The Committee believe that some understanding was given to the effect that the extension of the boundaries should not prove a source of loss to the Chinese revenue, and they quite concur in the desire to assist the Chinese Government in the matter, so long as it can be done without hampering the trade, or impeding the development, of the Colony, the future prospects of which, with enlarged boundaries, on its present basis of absolute freedom, are very promising. To secure their fulfilment, however, it should, in the first place, be laid down that the existing Customs Stations must be removed to Chinese territory, outside the Colony's boundaries, and that the harbour be jealously guarded from the intrusion of Chinese revenue craft of any description. The delays and obstructions to the movements of shipping, were the Chinese Customs allowed a free hand in our waters, would constitute a serious interference with that freedom, which has mainly contributed to build up the present prosperity of this port. Without much provision, too, it would be impossible to have that free communication and interchange of produce between Victoria and the outlying additions to the Colony, which may naturally be expected to develop.

That some advantage might accrue to the Colony by its being placed on the footing of a Treaty Port, and therefore participating in the facilities afforded by the Inland Steam Regulations, is quite possible, but such advantages would be greatly outweighed by the counterbalancing drawbacks. For the Colony to accept them as an equivalent for the freedom of the port, would be like bartering its birthright for a mess of pottage.

This Chamber, while invincibly opposed to the continuance in the Colony of the Customs Collectorate of a Foreign State, have no wish to place any impediment in the way of that State obtaining its rightful revenue, nor do they desire that a single dollar should be made by the Hongkong Government at the expense of China, but this can, they believe, be readily effected without the maintenance of any Customs Stations or Collectorate within the Colony.

The chief article which requires special protection for the Chinese Government is Opium, and the Committee are of opinion that, in connection with this import, more could perhaps be done than is at present by the Hongkong Government in safeguarding the Chinese revenue. The present system of licensing an Opium Farmer leaves much to be desired, and the Committee would suggest that the Government should give its consideration to the formulation of some other scheme which will not only provide an effective check on the import of the drug but will trace it also to consumption or exportation.

While, however, the Committee are prepared to sanction some sacrifice in revenue in order to secure in perpetuity the freedom of the port, they would point out that in addition to, and apart from, the objections already named to the proposals of the Chinese Imperial Maritime Customs, the damage to British prestige in China, and in the Far East generally, by the practical conversion of this Colony into a Chinese Treaty Port would be most serious, and in the eyes of the Cantonese, at any rate, would reduce Hongkong into a dependency of the Chinese Empire. Rather than accept an arrangement so humiliating, so derogatory to Great Britain, and so detrimental to the Colony's best interests, the Committee would be disposed to recommend the abrogation of the Convention and a reversion to the previous conditions.

I have the honour to be,

Sir,

Your most obedient Servant,

R. CHATTERTON WILCOX,

Secretary,

To Honourable T. SERCOMBE SMITH,

Acting Colonial Secretary.

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