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each Mui-tsai?" The idea of a Savings Bank Account was put forward by Sir Reginald Stubbs in paragraph 7 (d) of his despatch of 10th June, 1922. He sug- gested, however, that the girls should receive nothing in cash. My suggestion is that they should have both monetary wages and a savings bank account. If the girls had savings bank accounts, the system would stimulate thrift, and would encourage the feeling of independence. The girls would feel that as soon as they had enough money in the banks they could terminate their employment in an honourable man- ner. In any event, a savings bank account makes a pleasant wedding dowry. The matter nevertheless requires careful consideration from all points of view. It is necessary to remember the British policy of "Non-Recognition". The British view, as set forth in the "declaratory statement" (the Charter of Liberty) of the Ordin- ance, is that the money transaction cannot be "recognised". The Chinese attitude is that, whether it is recognised" or not, there it "is".

It would be necessary to reconcile the two ideas by making it quite clear that the introduction of the savings-banks system must not be taken to imply any weaken- ing of the Government's attitude regarding the "declaratory statement".

90. Personally, I cannot help feeling that this Charter of Liberty (like many another one) has partially defeated its own object by overstating its case. If the Government had dared to face the facts if it had recognized that Chinese custom and Chinese honour upheld the monetary transaction; and if it had (in the manner now suggested) helped the girls to build up savings-bank accounts, many a Mui-tsai who now feels bound in honour to remain where she is might by now have earned her independence. This could have been done and can still be done without, in any way, infringing the provision of section 10 of the Ordinance, which is that any Mui-tsai may apply to be restored to her parents without any repayment. At the same time, I think it would be a mistake for the Hong Kong Government to allow the introduction of the savings-bank system to be understood to be a measure pri- marily designed to encourage Mui-tsai to make repayments. It should be regarded as a measure to stimulate thrift, and to encourage independence.

91. Eightly. The question of prostitution in connexion with the Mui-tsai system has been mentioned in paragraphs 5 (3), 6 (3), 8, 9, 10, 11 and 23 of this Memorandum. Sir Cecil Clementi, in paragraph 9 of his despatch of the 16th May, 1929, to the Colonial Office, referred to it at some length :-

"You say", he wrote, "that is is constantly alleged that Mui-tsai are a regular source of recruitment for "prostitution", and you ask whether any fur- ther safeguard against this can be introduced".

He continued as follows:-

"It is very necessary to state emphatically that the Mui-tsai system is not a regular source of recruitment for prostitution. The usual source of such re- cruitment is among poor families, which in times of distress will sell female children to traffickers from whom they pass into the hands of women who train the children with the object of their becoming prostitutes. Mui-tsai are by train- ing not suited for use as prostitutes. The sale of a girl to be a Mui-tsai has indeed the effect of protecting her from prostitution, as her master and mistress retain her services for domestic purposes, and would guard her from the risks of ill-disposed persons. Mui-tsai are more closely attached to the family than hired servants, and they cannot so easily be decoyed away without enquiries being set on foot. As a rule, children who are acquired for training as pro- stitutes are not employed as domestic servants. They are generally taught to sing and to play Mah Jong, and to act as entertainers at restaurants; and in China, large numbers of these girls, who are known as "guitar girls" may be seen frequenting restaurants where they are called to amuse customers at dinner".

92. I may perhaps be permitted to say that my own personal experience in Malaya entirely corroborates the statements made by Sir Cecil Clementi. By the nature of the system, the Mui-tsai is, at the best, a member of the household, and, at the worst, a domestic drudge. As the first, she is protected by the family, and,

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