459

despatch No.139. of the 4th. July

are equally inadmissible.

8. The importation of arms and

munitions of war from Hongkong to

China can be dealt with by pro-

clamation under a colonial ordi-

nance and the only practical dif-

ficulty appears to be that of

protecting the opium revenue.

After careful consideration

of the question Her Majesty's

Government have come to the

conclusion that the easiest and.

most practical solution of the

difficulty, and that which af-

fords the best means of ful-

filling their pledge to the

Chinese Government, would be

the establishment of a system

whereby the Chinese Customs duties

on opium imported into China from

Hong Kong, including the new

extension, should be actually

collected by the Government of

Hong Kong the whole proceeds

after deductions of the expenses

of collection being paid over

to the Chinese Government. This

would involve regulations under

which all opium imported into

the Colony must be imported in

bond, and none exported except

out of bond. It should at the

same time be stipulated that the

Chinese Customs Stations and

Officers must be removed from

the Colony and leased territory

or its immediate vicinity, in

order to prevent a repetition of

the difficulties and annoyances

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