5. One of the new Regulations was to the effect that if any dutiable goods were found on board without a duty certificate, after passing the Station on the way out or in, the junk and cargo would be liable to forfeiture; and this rule applied to passenger junks, if, even without the privity of the Master, some passenger had concealed unreported goods in his baggage.
6. The carrying out of this Regulation obviously led to much injustice and hardship, and there are numerous cases on record where the forfeiture of junk and cargo were caused by the passengers' smuggling, without any participation on the part of the owner of the junk.
7. The numerous rewards and large prizes given to the crews of the Cruisers naturally attracted a lot of unscrupulous men, who, in their own interest made out many an honest trader to be a Smuggler; and contraband goods were said to be frequently "planted" on junks leaving the Colony by spies and informers, who had them pounced upon by the Guard Ships when outside the waters of the Colony, and frequently within them too, so as to have the junks forfeited with a view to obtaining the plunder.
8. The Complaints of the Mercantile Community, in reference to the Hongkong Blockade, are recorded in two Blue-books, entitled "Correspondence relating to the 'Complaints of the Mercantile Community in Hongkong against the action of the Chinese Revenue Cruisers in the neighbourhood of the Colony," and "Further correspondence relating, &c." (See Command papers, 1189 of 1875 and 1628 of 1876).
9. Command paper 1189 contains about 50 pages, and opens with a despatch of the 10th July, 1874, from Governor Sir ARTHUR EDWARD KENNEDY, covering a petition to the QUEEN from certain Chinese Merchants, who pray for protection from seizure of vessels resorting to Hongkong, by armed vessels belonging to certain of the Chinese Authorities at Canton, and for other relief in respect of the junks which had been so seized. They point out that, when the Colony was established, Chinese were invited by proclamation to settle in it, and promised protection against interference with their trade.
10. The next important paper in this Blue-book is a despatch of the Governor, forwarding and commenting upon the Report of a Commission of Inquiry composed of the Honourable P. RYRIE, Mr. H. G. THOMSETT, R.N. and Mr. M. S. TONNOCHY, on the complaints made by Chinese Traders on the illegal seizures, searches, and detention of their junks. The Commission show beyond all doubt that there were undue searches, harassing interference, and unjust levies made on the Junk Trade of the Colony, but the only remedial measure they suggested was one which the Governor considered impracticable, namely, to station armed vessels at the entrances of the Colony in order to prevent the Chinese Cruisers overhauling the junks which enter and leave the Harbour.
11. Then follow despatches from the Governor, some of which give further particulars of certain cases referred to in the Chinese Memorial. Another transmits a report of proceedings of a Public Meeting held to consider the Blockade of Hongkong, with resolutions condemning the action of the Hoppo and Viceroy, and calling upon Her Majesty's Government for protection against the invasion of the "Sanctuary of the Port." This Blue-book also contains despatches from the Colonial Office to the Foreign Office discussing the answers to be given to the Memorialists, and the remedies suggested by the Canton Consul and Hongkong Government; and there is also an important despatch to the effect that "H. M. Minister at Peking will be directed to call the attention of the Chinese Government to the interference with the Junk Trade of Hongkong."
12. This Blue-book winds up with a despatch dated 22nd March, 1875, to the Governor as to the reply to be given to the Chinese Petitioners; to the leaders of the Public Meeting; and to the Chamber of Commerce. The Secretary of State clearly lays that the Chinese Government had a perfect right to establish the Stations where they are placed them, to overhaul Chinese craft at sea or in Chinese waters in search of Smuggled opium or other goods; but that representations would be made to the Chinese Government to render these searching operations less vexatious and harassing than they had been heretofore.
13. Blue-book No. 2, contains forty pages, and is a continuation of the same subject. The Hongkong Government calls attention to further abuses of the Customs Cruisers. This parliamentary paper also shows that the Chinese Native Customs have no fixed tariff, or at all events will not produce it or publish it. It also shows that cotton and other Foreign goods sent from Hongkong to the Southern Prefectures are much more heavily taxed than the same goods sent from Macao, thus placing Hongkong at a disadvantage with Macao as a port of trade. It is also shown here that the duty on Sugar entering Hongkong by Junks is much higher than what is levied at ports of China or at Macao, and that goods which had obtained the "Grand Chop" after payment of all duties at one of the local Stations pointed out by the Viceroy and Hoppo, had to pay them over again at the port of entrance. The Colonial Office points out moreover that goods are made, by the Canton Authorities, to pay duty both of export and import, as if Hongkong were a port of China. Against this Lord CARNARVON protests.
14. The unfairness of the taxation, the breach of faith, if not hostile action of the Chinese Customs towards the Hongkong Junk Trade as compared with their treatment of that of Macao, was fully shown in a paper written by me in October, 1874, and published in Command paper 1628 of 1876, At the request of Governor KENNEDY, in 1876, I investigated at considerable length the question of what duties were payable between Hongkong and the ports in the lower Prefectures, as well as between Hongkong and the ports in the Fo-kien province and Formosa. That document was not published in deference to the request of the Chinese who gave the information, and who made it a condition that their names should not be divulged, for fear of involving them in trouble with the Chinese officials. The enclosures are very instructive, as showing the Chinese methods of levying dues on their great rivers and at the out-ports. (See C.S.O., 1769 of 1876, and Governor KENNEDY's despatch of 6th August, 1876).
Proceedings after the Chiefoo Convention of 1876.
15. The arrangement made by Sir THOMAS WADE in the Chefoo Convention, September 13th, 1876, marks a new departure in the history of the Blockade question. By that Convention it was agreed (Section III, Article 7,) "to appoint a commission to consist of a British Consul, an Officer of the Hongkong Government, and a Chinese official of equal rank in order to the establishment of some system that shall enable the Chinese Government to protect its revenue without prejudice to the interests of the Colony."
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