CORRESPONDENCE

OF THE

508

HONGKONG, CANTON & MACAO STEAM-BOAT COMPANY, LIMITED, AND THE CHINA NAVIGATION COMPANY, LIMITED,

WITH THE

HONGKONG GOVERNMENT,

ON THE SUBJECT OF

SMUGGLING BY THE RIVER STEAMERS TO CANTON.

HONGKONG, 22nd September, 1888.

SIR,

We beg to direct the attention of His Excellency the Governor to the working of the Opium Ordinances of the Colony so far as they affect our business of ship-owners running a regular service of Steam-boats between this port and Canton.

For some time past we have found a great increase of smuggling by our steamers into Canton of prepared Opium.

This prepared Opium, we have not the slightest hesitation in stating, is the property of the Opium Farmer, and that he suborns our Native employés on the vessels, to assist him in running the drug into China without payment of duty.

It is impossible in these vessels, for the personnel most of them in the pay of the Opium Farmer, to institute a search that shall lead to the discovery of the smuggled drug. When we mention that the vessels are frequently in the hands of a scientific search party from the Chinese Customs for several hours, and that they fail to detect the presence of the Opium, which they know to be on board, you will readily understand the difficulties that beset us.

The frequent contraventions of the Chinese Customs regulations have caused the Customs to become very severe upon us, and they now threaten to fine us heavily for each breach that occurs, while, if the smuggling continue, we should not be surprised if an attempt were made to withdraw the privilege we enjoy in running these River Steamers, which would most seriously cripple our trade.

The remedy is not easy to find. If it could be insisted upon that the Opium Farmer ear-marked each package of prepared Opium that left his control and kept a register thereof so that the recipient could be traced, and that the Farmer's responsibility in respect of this Opium did not cease till it paid duty at the Chinese Customs, the relief we desire might be obtained. It is quite possible for the supposed intermediary to destroy the identity of the package after it left the Farmer's premises, which would render the precaution of ear-marking the package nugatory.

It seems to us, therefore, the only method of really meeting the difficulty would be to make the Farmer responsible for all the consequences of smuggled Opium that is seized by the Chinese Customs. Such a course may appear drastic, but we feel certain he has the power and could take such precautions as would make the liability merely nominal.

We pass over the loss of freight that we sustain through this illicit traffic, for we do not obtain a cent on the carriage of the drug.

The Honourable F. STEWART, M.A., LL.D.,

Colonial Secretary.

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