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the wish of the Hong Kong Government to give it could in preventing Hong Kong being made the base of smuggling operations into China. - them every reasonable assistance
We met again on the 1st Instant. & Sir Robert Hart shewed that smuggling by armed bands of Chinese in the early days = that smuggling was most difficult to prevent when the Customs Authorities had only to collect 30 taels per picul, & that now, when they have to collect 110 taels it will be much more difficult.
I took occasion to point out that the Chinese Government had two channels for the collecting of duty on Opium, the Foreign Inspectorate collecting duty from Foreign ships, & the native Collectrate for that imported by junks, that 25 per cent is given back to the shippers of opium by junks, & that no opium would likely be shipped through the Foreign Inspectorate which gave no such return. This he said it was intended to put a stop to.
After a good deal of discussion he stated that what the Chinese Government had to consider was the best way of collecting the heavy duties of 110 taels, and that there are only three ways of doing it. "China to do it alone is a way which will be very expensive, which will work a great deal of trouble, and probably irritation, in various quarters, but it will be certain & effectual if we do it ourselves. It will be expensive & troublesome but effectual.
"The second way would be for England to do it for us, to collect the Revenue which China is to have from Opium, from India, ......
And