(d.) On the return voyage from such ports, launches with their passengers and cargo must proceed to the Imperial Maritime Customs sub-office agreed upon by the Hong Kong Government for examination and payment of the necessary dues, if any, to such sub-office.

(e.) Evasion or admission to report at the specified customs station on the inward and outward voyage will entail confiscation of launch and cargo.

ARTICLE 6.

Junks and lighters registered by the Imperial Maritime Customs may be towed between Hong Kong and non-open ports in the Liang Kuung provinces by steum launches duly registered by the Imperial Maritime Customs under the Inland Waters Steam Navi- gation Regulations and in that case such junks, lighters, and launches will be treated as junks under sail, and be required to conform with the rules governing jonk traffic, ond the procedure prescribed in article 5 of this convention.

ARTICLE 7.

Lighters towed by launches to treaty ports in the Liang Kuang provinces may have their hatches sealed by the Imperial Maritime Customs prior to departure, and such vessels may then proceed direct to their destination. The Imperial Maritime Customs reserve the right, however, to require the launch to call in at the customs station en route for search. Launches and lighters found guilty of revenue offences will be .subject to heavy customs penalties.

ARTICLE 8.

Foreign goods carried by junks or launches registered as in article 5 clearing from Hong Kong, Victoria Harbour, for non-open ports in the Liang Kuang provinces may acquit themselves of import and transit duties before departure and be granted transit passes. Report for customs purposes must be made at the Imperial Maritine Customs sub-office agreed upon by the Hong Kong Government. Junks and launches carrying transit-pass cargo will be subject to the usual rules re call at the customs stations specified on the pass.

ARTICLE 9.

Goods from treaty ports in China under customs documents in transit through the colony may be placed under customs supervision, i.e., landed pending transmission by sea or by railway within a specified time into prescribed go-downs (to be agreed upon) open to the Imperial Maritime Customs, and may maintain their original status and receive the benefit of their original customs documents at final port of arrival.

ARTICLE 10.

For the better prevention of smuggling across the land frontier of the colony the Government of Hong Kong will select, in consultation with the commissioner of the Imperial Maritime Customs certain ports of entry for merchandise, including live- stock.

Cattle or goods found in transit across the frontier of the colony from Chinese territory which are not in possession of the proper customs documents will be detained pending their production, or sent back to China.

ARTICLE 11,

The Imperial Maritime Customs will take active steps to prevent the illicit entry into the colony from China of liquor, opium, compounds of opium, and morphine, and will co-operate with the Hong Kong Government in controlling such traffic by sea and by land.

ARTICLE 12.

For the promotion of accurate knowledge and in the interests of Chinese revenue the Government of Hong Kong will, so far as the conditions of the free port admit of it, collect and publish statistics of imports and exports,

5

ARTICLE 13.

Office and go-down accommodation for the examination and storage of goods carried by the Kowloon-Canton Railway and for payment of duties thereon will be provided at reasonable rates by the Hong Kong Government. Such duties will be collected by the Imperial Maritime Customs under regulations to be mutually agreed upon under the following conditions :---

(a.) Goods leaving Kowloon for China by train stopping at no intermediate station in British territory shall pay customs import duty prior to departure.

(b.) Goods arriving at Kowloon from China uncovered by customs documents shall pay customs export duty prior to release.

(c) Goods leaving Kowloon or any intermediate station in British territory by train stopping at such intermediate stations may pay import duty either at Kowloon or at the Chinese frontier station of Shumchun.

(d.) Goods leaving Shumchun for intermediate stations in British territory not covered by customs documents shall pay export duty at Shumchun.

(e.) Goods carried from any station on the British section of the railway to any station in China, and goods taking out transit documents from the office of the Imperial Maritime Customs in Hong Kong, shall pay according to the revised import tariff of China of 1902, or future revisions thereof, and such payment of import duty and transit due (if any) shall free the goods to place of destination.

(f.) Goods carried from any station in China on the railway to any station on the British section of the railway, and goods taking out fransit documents for export from China shall pay according to the treaty export tariff of 1858 or future revisions thereof, and such. payment shall free the goods to place of destination on the railway.

ARTICLE 14.

Both Governments agree to take the necessary steps to enforce the foregoing articles by such ordinances, edicts, or regulations as may be appropriate to give them the force of law.

ARTICLE 15.

This convention shall remain in force for a period of five years. It is subject to revision at any time by mutual agreement between the high contracting partics, and unless denounced by either party six months before date of expiry it shall continue in force from year to year until either party shall give six months' notice of its desire to terminate it. It is also agreed that during the duration of this convention the commissioner of Chinese Customs in Hong Kong shall continue to be British.

ARTICLE 16.

The English and Chinese texts of this convention have been carefully prepared; but in the event of there being any difference of meaning between them the sense as expressed in the English text shall be held to be the correct sense. This convention shall come into force on the

It shall be ratified by the Governments of the tiro countries, and the ratifications shall be exchanged as soon as possible. In witness whereof the undersigned duly authorised thereto by their respective Governments have signed the present convention.

Done at

in

Chinese) the the

in quadruplicate (four copies in English and four copies in

being the

day of the Hsung Tung.

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moon of

326

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