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independent of those purchased by Macao "dealers, who if they did not buy them here would procure them from Singapore - smuggled from Hong Kong into the mainland in small ventures by the Native vessels which take Exports from here.

13. It would also have appeared, had this Government been consulted, that so far from encouraging

化 16' Vide Joverar to Secretary of State No 553, Para 2 14. 25.2.6. 10442/68

Commercial Houses here are willing to assist in putting down Smuggling in any manner that does not impair the freedom of the Port.

19. I believe that something, if not much, might be done in that direction and thereby a spirit of concession and justice might be fostered in the Chinese Authorities and even that comparatively small contraband trade might be terminated.

Every reasonable source of difference between this Colony and China should be removed as far as practicable and all sources of irritation. Not merely am I personally, but the wealthiest and most extensive English and other manufactories, whose legitimate export trade could be vastly extended instead of being attenuated and narrowed into contraband traffic by the fear of visits from the Customs Cruisers who recently, in furtherance of a very different policy, have been robbing and seizing vessels for carrying innocent cargo such as cotton and British Piece goods.

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