49

39. These more serious crimes are almost entirely engineered from Hongkong, or from Chinese territory; for the people of the New Territories are peaceful and law-abiding. Strenuous efforts were necessary to rid the newly acquired territory of members of the Triad Society, resident in China, who terrorised certain sections of the population and extorted much money from them. Since the pacification of the country, the commonest offences have been those against the Opium Ordinance, which cannot be regarded seriously it was natural for the inhabitants to resent the enormous tax on opium, which practically put it beyond their means, and drove them into smuggling the cheaper stuff from across the border. Latterly, however, the tax on opium has been increased in Chinese territory, and the smuggling of opium into our territory has now ceased.

40. The much more moderate taxes on liquors introduced in 1910 were quite favourably received, and breaches of the Liquors Ordinance have been rare.

41. Gambling is a vice or a recreation to which the Chinese are particularly prone, but owing to the efforts of the Police, gambling houses have almost disappeared from the New Territories, and only maintain a precarious existence in some fishing villages more remote from Police supervision, such as Ma Wan, Peng Chau and Hang Hau, in the Southern District.

42. The greatest uumber of Police stationed in the New Territories was 187 in 1900: consisting of 31 European, 122 Indian and 34 Chinese Police. The number in December 1911 was 164, viz., 13 Europeans, 106 Indians and 45 Chinese, distributed among 17 stations: besides these, 6 Europeans are attached to the three Police Launches which patrol the whole of the waters from Mirs Bay on the East to Deep Bay on the West.

As can be seen from the table attached (Appendix C), the tendency has been to increase the Chinese force, and to decrease the European to the minimum required for the charge of the various stations. It is obviously desirable to encourage the use of Chinese constables, but their proneness to accept squeezes from gamblers and other law-breakers, and natural incapacity for discipline and authority, still militate against their employment for active duty. So all the patrol work in the Territory is still performed by Indian Police alone, under the supervision of Europeans; and of the Chinese, the senior and more able men are employed in detective work, the junior only in station duty.

43. In addition to their ordinary Police work, the Police perform all the Harbour Office work for the coasts and waters of the New Territories, and assist in the collection of Crown rent and other revenue, The Police launches in particular collect licence fees from junks, sampans and fishing nets,

VI.-REVENUE AND EXPENDITURE.

44. The collection of revenue from the New Territories was no easy matter in the early days of our administration. The Chinese Government had not bequeathed to us any scheme of collection at all consistent with our principles, and it was necessary to proceed very slowly with the collection of land taxes until the rent roll was made out. It was not until 1905 that this was done, and collection began in earnest. The villagers, with the Chinese horror of new methods, were reluctant to pay their rents at first, but in 1906 a whole year's rent was collected with some arrears, and after that collection became more easy

and rapid in each successive year. Now it is paid as fast as the money can be taken in throughout the whole Territory, except in New Kowloon, whose more enlightened inhabitants are apt to put off the evil day as long as they can.

45. 1910 was the first year of the Liquors Ordinance which came into force in the New Territories on January 1st: and on account both of the amount realised and of the readiness with which it was paid, the liquor tax must be considered to have been a great success.

46. The total revenue actually obtained from the New Territories for 1900 was $17,530.75; for 1910 the direct revenue was $255,470.95 in which the chief items were:—

Crown Rent,

..$ 115,448.08 54,056.43 27,098.30

Liquor Duties,

Harbour Dues and Licence Fees,

It is not possible to calculate accurately what proportion of the revenue derived from the Opium Farm is attributable to consumption in the New Territories. It was probably not less than $50,000 for the year 1910.

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