recognized establishment of "interests of the free port of Hong Kong with those of "the adjacent Chinese Territory where duties are levied a branch of the Chinese Foreign Inspectorate at Hong Kong itself, is at present substantially a course which many but clandestinely practised (Reprinted and acquiesced in by those Chinese Merchants residing in "this Colony who desire to avoid trouble and risk "Squeezing by low officials outside the Harbour limits?
"25. Even to this course grave objections might be made and difficulties would doubtless attend any attempt to re-export the articles such as Arms, gunpowder, saltpeter &c. are contraband" (Ra. Carr: p.6) The systems to which Sir A. Kennedy refers in para 24 as being "clandestinely practised by Chinese merchants" is no doubt that of purchasing from "Customs Secret Agencies" in Hong Kong "Duty" Chops or receipts, production of which their vessels pass unmolested to leave.