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HONG KONG DAILY PRESS, TUESDAY, JULY 16, 1935.
"NOT SINCE DAYS OF
HEROD"
Alleged Diamond Smuggling
Shanghai, July, 9.
In H.M. Police" Court, yesterday, before the Registrar, Mr. C. H Haines, the hearing of charges of alleged diamond amuggling brought by the Chinese Maritime Customs against two British sub- jects, Mr. H. M. Gregory and Mr.
“SHAMEFULLY PROCEEDED
AGAINST
"submit (a) that there is no evidence that my client ever im- ported any diamonds; (b) that there is no evidence that he eve naported any diamonds during the three years ending March 17, 1934: F. R. Gabbott, and also against aand (c) that there is no evidence third, J. B. Ipekdjian, who, how- that he ever intended to evade pay- ever, is not in Shanghai, was re-ment of duty payable on such sumed. At the end of the day's damonds to the Chinese Maritime proceedings the accused Were Customs. In these circumstances, found not guilty and were dis-1 respectfully submit that there is charged.
to o her course open but to dis- Mr. M. Reader Harris represented miss this case against Mr. Gregory. .ke Chinese Maritime Customs, and I invite your Honour to state while Mr. H. A. Reeks, in associa-that he is a man who has been tion with Mr. Ranald McDonald, Funwarrantably" and shamefully appeared for Mr. Gregory, and the proceeded against, and that he interests of Mr. F. R. Gabbot; were leaves the Cour: Without a vestige looked after by Mr. John McNeill. of a "staln on his character." Mr. Reeks also held a watching brief for the Netherlands firm of Maatschappij tot Mijn-Bosch-eri Landbouw exploitatie in Langkat, which. it, was understood, has an interest in the diamonds concern-
ea.
Mr. Harris, on behalf of the Cus-, toms, recalled the Chinese witness. Taze Foong-chiang, who identified a large group photo as being that of guests, friends, dealers, and members of the China Diamond | Cutting Works. He stated that he appeared in the group at the ver- bai invitation of the compradore of that firm, Mr. Ma Hoching. It was taken at a party at which Mr Ipekdjian made a speech. In the group. witness identified MI. Ipekdjian, Mr. Gabbott, and Mr Gregory.
Cross-examined, witness admit- ted that he did not know every body in the photograph, and it was quite possible that many of them were not connected with the
Ch'na Diamona Cutting Works at all, but "I' known" them as doing diamond business."
Mr. McNeill; You had never seen. some of these people before, nad you? Some of them I had not seen before.
As some
of
ד
these were tota: strangers to you, and as you had
*
ONE NOTABLE FEATURE
Of The Agreement
(Spect Air Mali Servicci
London, June 26.
There is one notable feature of the Anglo German Naval Agree-, ment. It bases the strength of the new German fleet ön “the aggregate naval strength of the members of the British Common- wealth of Nations."
Here is stressed; for the world to see, recognition of the fact that British can enter into no new commitments without previous consultation with the Dominions,
The
:
signature of the naval agreement is final denunciation of the Versailles Treaty by Britain,
Pacifists may wonder" at such proceedings.
Germany was forbidden by the Versailles Treaty to have any sub- marines. Now she is permitted to build as she likes, provided she notiães Britain.
Under the 45 per cent, limit, which is the ostensible basis of the agreement, and certainly will be, exceeded, Germany will ac- tually have ten more submarines than before the war.
་
THE WEDGE
The Treaty of Versalles further limited Germany's army to 100,000 men and forbade conscription.
Now she is creating a conscript army of 550.000 men, which, with reserves and training cadres, will give her a prospective army of five
Mr. McNeill, for Mr. Gabbott, associated himself with Mr. Mc- Donald's submissions on points of law, and insisted that there had not been à "scintilla of evidence produced that my client. Mr. Gab- bott, has ever had any connection with the China Diamond Works Mr. McNe'll also closely analysed the evidence for the prosecution. and, conduded by saying On the evidence that has been pro- duced, I say, with confidêncë, that Į million men, your Worship cannot possibly con- These developments occur under vict. The onus of proof is upon a peace-loving British Govern- the prosecution, and I say they ment. have not made out a "prima facie” case, and that there is, no case at all against my client. It is essen- tial that "mens rea" should be" pro- ved, because intent must be pro- ved, and guilty knowledge must be proved, and no "ground whatever has been established for saying that Mr. Gabbett had any guilty knowledge of these diamonds at all-whether they were imported or not without paying the duty. and I most strongly submit that the case against my ellent must be dismissed."
MR. HARRIS REPLIES Mr. Harris, resisting the sub- missions put forward by the de- fence, assetted: "It is in evidence that, in March of this year, a com- pany called the Jewellers Company was incorporated, one of the prin- cipal objects of which was to carry on business as Importers and ex- porters of buillon precious stones, and precious metals. That com- pany had the same offices as the the business done, and for friend-China Diamond Cutting Works,
nothing to do with the issuance of the invitations, you are not in a position to say why the invitations were issued, are you?—No, but the purpose of this party was to hear a speech by Mr. Ipekdjiän. I was to act as interpreter. It was for
ship.
DEFENDANT'S SUBMISSIONS
Upon Mr. Reader Harris indicat- ing that this concluded the case
Donald and Mr. McNeill, at once submitted that there was no case
to answer. Mr. McDonald said:
and had as Its first directors Ipek- djian. Georgory, and Gabbott, and, last but by no means least, they took the same cable address as the Diamond Cutting Works, as
H
Germany's object is to drive a wedge between Britain and France,
Reader Harris that the “Customs Consolidation Act 1876 should be applied here. The Act is purely a domestic one, and, as is admill ed
by the prosecution cannot be applied to British subjects in re- gard to an oftence against the
Chinese Government. I am unable to see why the particular form of rocedure established under than Act should be imported into China, In order to relieve the prosecution of their duty in penal cases of proving the evidence beyond all reasonable doubt The Article is quite clear, and it follows, there- fore," that the rules of procedure must be obeyed and the case dis- missed against both deferidants."
QUESTION OF COSTS
A strenuous application was at ance made. by all three counsel
engaged in the defence, that costs should be granted against the Crown on the special scale, on the ground that the charge brought against the two detendants was malicious, frivolous, and vexati-
for the prosecution, both Mr. Mc-theft notepaper shows. I emphas-ous." Mr. Reeks most strongly urg- ize particularly this close connec- ed this, saying:-"I think it would tion, and the fach of this very be a very good example, and put large quantity of diamonds being in the possession of the China Dia- mond Cutting Works, on the very large bilk of which, obviously, duty had not been paid.
This must be one of the slender- est cases of smuggling that any Customs in the world has ever had
the temerity to bring in any Court. If this case, as Mr. Reeks said at the outset-os, rather, this apology for a case which has been put be- tore your Honour-ly to be treated as being intended to need very serious consideration, then no Bri- wish subject in Shanghai is safe from a search warrant and a com-
plaint that he has in his posses sion dut:able articles which he or she is importing, ank upon which duty has not been paid. I make that submission with the utmost
seriousness.
"In law, I say that, with regard to Mr. Gabbolt especially. If in fact he is not a partner in the Diamond Cutting Werks, but has some other kind of association, that not a ground on which you can dismiss this case. I say that the only fair thing in justice to the Chinese Maritime Customs is that your Honour should find that they have made out a "prima facie case, in which you are bound to draw the inference that these goods were Imported by the defendants, and call upon them to put forward their defence."
· REGISTRAR'S DECISION
evidence
people on their guard against bringing these unjustifiable pro- secutions. The costs of my clients are not smali: apart from the tre- mendous loss to their business, they have had the shock to their reputation, and the fact that there was not even a "prima facie case shows that they were not justifled in bringing this action, and the only way to deter these trrespon- sible cases, is to mulct those who bring them in the costs their action has incurred."
The Registrar-I think that one can rule out straight away the question of malice. I cannot con- ceive of the Chinese Customs bringing a malicious prosecution in any case, and so there only re- mains whether it was frivolous or vexations. I think there was some evidence, and I think that had the rules of evidence been such as rule In England, I should have been to say there was some case for the detence to answer. inasmuch as the onus would have been on them ɔ show that the goods were not smuggled. In view of all that, 1 think there should be no order to costs,
as
"If any of these diamonds had been imported during the last three years, there is not an iota of evidence that duty has not been "This case." said the Registrar, paid. Probably never since the "is really quite simple. The charge days of Herod has any civilized is under Art. 74, sub-secs, 1 and 2 Customs authority acted towards of the China Order-in-Council, 1925 citizens of the highest respectabil-In order to succeed, the prosecu ity and integrity in such a light-tion must prove (a) that the ac- hearted, careless and irresponsible cused imported diamonds in to manner as the Chinese Maritime China, and (b, that they had the Customs Have in this case. Do they intent to evade the payment of think it is a joke, or a matter of duty payable thereon to the Chin- indifference for my client to find ese Government. The
⠀⠀ FATE OF THE DIAMONDS himself in the humiliating position submitted by the prosecution does Mr. Reeks contended that, as the in which he now is, with glaring no more than raise a presumption result of the ruling just delivered headlines in the newspapers set that, if these diamonds were im- by the Registrar, an immediate or- ting out the charges against him, ported into Chiria during the past der should be made on the police with fantastic figures of anything years, they dr the majority of to yield up and return to the China from $300,000 up to Tis. 1,000,000 them, had not paid duty. Had the Diamond Cutting Works the dia- being put upon the diamonds prosecution been able to show that monds seized on their premises, which he is alleged to have fradul- the diamonds had been so import-but his Honour made an order that, ently imported. I would like to edit would still be necessary to the diamonds should remain where 887: Let those who were respon show that they had been to Am- they were at present, pending the 'ble for this outrage committed on ported by the two accused return of Mr. Ipekdjan, the owner my client, before they commit an There is not the alightest of the works, or such further action uther such act of folly, consider evidence before me that Mr. Gre as Mr. Reeks might take to compel how they would like to have similar gory, or Mr. Gabbott, did so import the disposal otherwise of the gems. charges brought against them, and them, and I must hold, therefore, in question, a decision which hitve, a did my client in that that there is nothing to justify Reeks protested agg memorable search the cohorts of me in putting them on their deventing my ellents the police
olice and Customs come down fence. I am afraid that I cannot business, and in like a ravenous wolf on the fold: agree with the submission of Mr. SAME,
THIS HOT WEATHER
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