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THE HONGKONG WEEKLY PRESS AND indicated as to how duties on Chinese liquors shall be dealt with. Regulations on
such a subject will no doubt require somewhat frequent amendment before we can elaborate a complete and serviceable scheme. When they have been elaborated those of them which are of sufficient importance will be embodied in the new con- solidating Ordinance, and this Council will then have an opportunity of thoroughly discussing them. I think that in the circum- stances in which we are placed. this is a most practicable and most useful course, Meanwhile you will notice that it has been reserved for to the Legislative Council modify either the scale of duties or the fees charged on all new licences created, that is to say, the fee for private bonded warehouses and the fee for what we call chemists' licences. I will add one word concerning Part VI. which gives certain powers of search. Those powers are necessary, but it shall be my special care to see that they are not arbitrarily or unnecessarily exercised. They are adopted from the Straits Ordinance, but that Ordinance also gives power for domiciliary and personal search, both of
eliminated which have been
as unneces- sary here. The powers retained are, in fact, the minimum necessary. I would remind you that these powers already exist under the Opium Consolidating Ordinance which we passed a few days ago. It is unlikely that any respectable people would have their baggage interfered with, but without such powers any coolie could bring into the Colony a handbag full of liquor either foreign or Chinese and could defy the revenue officer. It is necessary for the Government to have power in reserve to protect its revenue and also to have power to protect those who are paying their full duties and those who are paying licence fees. It is specially necessary as regards samshu, and we cannot impose it on one class of liquor to the exclusion of others. The search of godowns is, I think you will all admit, a very necessary power. That already exists in the case of morphis and arms. The stringency with which that search is prosecuted will entirely depend upon the co-operation of the firms in the Colony to assist the Government in prevent ing smuggling
they cannot do it alone. I am told that the intimate knowl- edge which the various firms have of each other will be sufficient to prevent any system- atic smuggling. I can assure you there is no one at this table who is more jealously anxious to safeguard Hongkong as a free port than I am myself. (Applause.) We propose to provide only a small preventive service, relying, as I said, on the co-operation of the big firms in the Colony, on the heavy penalties against any offenders under this Ordinance, and the risk to their good name which will be involved on anyone who contravenes it. Liquor, after all, is not like drugs. It is a bulky article. The profit on smuggling it could only be worth while if the smuggling takes place in large quantities. whereas the profit on a single case of morphia is very large. The sole object of the Govern- ment in introducing this Bill is to raise revenue on intoxicating liquors in a way that will cause least inconvenience to the community and the least disturbance to trade. It is a dif- ficult matter, the more so as the restrictions now placed on opium may tend to an increase in the consumption of liquor by the Chinese, There- fore, in selecting this particular form that is to
.2
[September 13, 1909.
Hon. Mr. HEWETT—I have a few remarks which I think it advisable to make, if you will allow me. I understand the member who re- presents the Justices of the Peace also wishes to say something, and it would rather clear the ground if you allowed us to say what we have in our minds. In the first place, we all know this Bill has of necessity been prepared somewhat hurriedly, and as a matter of fact I think no member of the Council had seen a copy of this Bill before yesterday afternoon. For myself I can only say that this morning was the first time I had an opportunity of carefully studying the provisions of the Bill. There is I think your much to recommend it, but Excellency, if you allow me to say so, is some- what optimistic in the belief you have expressed as to the manner in which this Bill will be ac- cepted by the community. The Bill appears to be in many respects highly contentious, and I think before it is passed very consider- able modifications will be asked for. This is a new departure. We recognise the necessity for increasing the revenue of the Colony at a very early date, and therefore this change of administration must, of course, be through in the shortest possible time, but a Bill of this far-reaching importance cannot few possibly be rushed through within weeks. It must be carefully considered not only by the legislators of the Colony but by the public at large. We must see in striving to make up the necessary increase in our re- venue that we do not deal a serious blow to the trade of the Colony. The Bill requires to be modified to meet the views of the community at large, who are largely business men, as well as those engaged in that particular trade. When once a reasonable Bill is put before the Chamber your Excellency can rely upon the hearty honest co-operation of
•
and
carried
a
Liquor of all kinds pays upon import unless it is removed under permit for storage in bond, It must be stored in bond either in the King's warehouse or in a private licensed warehouse. If it is placed in bond it remains under the definition in the Bill of "dutiable liquor," and cannot be taken out of bond except under the permit of the inspector or on payment of the duty, in which case it can only be removed in unbroken cases. Bottling, and blending, and watering down proof spirits and so on, can be done in a private warehouse. This system avoids the necessity for labelling rebates on re-exportation. It also avoids the difficult task of tests of proof and avoids the necessity of any special marks on labels. hips must declare their imports of intoxicating drinks. Their manifests show all liquor on board, and it is urged they have already a legal remedy against one who imports by the ship liquor disguised as any other wares. The system of the private licensed bonded warehouse obviates the necessity of searching any public godowns, and therefore the risk of illicit consignment to order decreases, as also the risk to some extent of smuggling. The licence fee for private licensed warehouses is somewhat high, but it is the same as imposed in the Straits Settlements. Whole- sale dealers who import for re-export can afford a fairly large fee, and the establishment of private licensed warehouses, involves con- siderable supervision and an extra staff to the government. Upon liquor distilled, manufactur- ed or prepared in the Colony, an excise duty is im- posed equal to the import duty. Imports, of course, have to pay freight, while licencees of distilleries, breweries, etc., have to pay a licence. Hitherto apparently the two have been fairly equal. That is to say, that import of liquor has com- peted on fair terms with liquor of local manufacture. If it should appear that the excise duty in any way handicaps the local manufacture it may be a matter for consider ation whether that excise duty should not be increased to a small extent. The place where the liquor is distilled or manufac tured is treated for the purpose of this Ordin- ance as a private licensed warehouse from which no liquor may emanate until it has paid duty, unless it is removed under permit for export. Therefore, it eventuates that all liquor in transit and all liquor dealt with in the Colony are duty free. They only pay such fees as may be charged for storage in the King's ware- house or in private licensed warehouses. The Bill therefore in no way affects this port as a distributing centre. It only affects licences on liquor consumed in the Colony. The preamble of the Bill shows that it is avowedly of the nature of hasty legislation because it is inevitable that any Bill introduced in this Council imposing a new duty should be passed with expedition in order to guard against imports in anticipation. I hope that even the hon. member who represents the Justices of the Peace will not find occasion to cavil at the hasty nature of this legislation, and that he and all others will assist the Government in passing it in the shortest possible time. In my anxiety to allow ample time for the fullest consideration of this very important subject, together with the difficulty of drafting a long Ordinance of this class, and also I may add the pressure on our time caused by the passing of the lengthy Opium Consolidation Ordinance, the present
Hon. Mr. MURRAY STEWART Your Ex- Bill has been deferred to the last possible moment. a revenue from intoxicating liquors, we are cellency, It is true, as the hon. member for the I hope that we may be able to pass it acting not only in the interests of the Chamber of Commerce has just said, that I had at our next meeting. The Bill itself is only revenue, but, as I take it, in the peace and good intended, with your permission, briefly to ad- provisional, and I would undertake to intro- order of this Colony. Already I am informed dress the Council even at this early stage, duce so
soon as possible the consolidating that the Chinese community consume as much with a view to accelerating the passage Ordinance so that hon. members may have an if not more foreign liquor than the Europeans. of the Bill. My idea is to indicate to the opportunity to deal with the question of licence Our object is to tax the consumer and Government where their proposals are likely to fees under the existing Ordinance, which are not the vendor. The latter has paid suf-excite opposition. Originally, opposition to put- not touched at all by the Bill now before the ficient by paying the existing fees. The Bill ting on an import duty arose out of the fear that Council. The schedule which was the subject of before you is a sincere attempt to give effect to this could not be done without creating the the resolution of August 13th will take a new the wishes of the community as they are repre- whole paraphernalia of a Custom House. That form, and although it is a matter which has no-sented by the unofficial members of this Council. fear I formerly shared. The idea seemed to be thing to do with the Bill before us, it will per- I look confidently to the unofficial members incompatible with the preservation of Hongkong haps be convenient if I state at once that there to assist the Government in passing this Bill as a free trade port. No one believes more is no intention on the part of the Government at an early date, and I look confidently to the firmly than I do in the absolute necessity for that the schedule should be amended to increase community to make it as effective when it has maintaining that. At an interview granted to the existing licence fees. Meanwhile they re- been passed. (Applause.)
the unofficial members at Government House, to main as they are. The Bill as it stands gives
which your Excellency has referred, I spoke somewhat large powers to the Governor-in-
strongly against examining the luggage of Council in order to make regulations to carry
European passengers by ocean steamers. It was out the principles which are embodied in it.
only because so many gentlemen, who are in a You will note especially that no methods are
position to know how the trade is worked,
say,
if
Hon. Mr. HEWETT-Have I the right to reply, your Excellency?
HIS EXCELLENCY It is usual for the debate to take place on the second reading unless you have anything special you wish to say.
of the community. the greater section This Bill does not, I think, meet the views of a certain section of the community, partion- larly in regard to domiciliary visits, and there are one or two points to which your Excellency referred, such as bottling, blending, and ware- housing-a very important branch of the trade of the Colony-which require consideration, Your Excellency spoke of ships returning mani- fests of liquor on board, but, as I pointed out to your Excellency privately on a previous occasion, it seems to me that it might be a hardship to ask ships to return manifests of all the cargo of liquor on board. It should be only on the liquor landed in the Colony, Another question-and this is a debatable point which will be discussed in committee-is that the duties are altogether too high. Allowing for the profits and the expense of the spirit farm in the Straits Settle- ments the Government nets something like seven and a half lakhs. If we work on the same basis, we should expect, if the Bill is carried into forcé as it stands, to have a revenue of something
over a million, especially as your Excellency has said that the cost of a preventitive service would be very small. I thought it was right to ask your Excellency to allow me to make these remarks-I speak for myself only, as I have had no opportunity of consulting my unofficial colleagues in order to show as far as I can understand, that this ques- tion will require much more consideration and possibly alteration than your Excellency seems to think desirable.