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certain restrictions.

(b) The penalty under the order-in-Council appeared

to be too small, and there was no power of forfeit-

ure.

(c)

Fuller powers of searoh, seizure and arrest seemed to be called for.

(a)

(e)

There was no power to establish the machinery necessary for controlling, and obtaining informa- tion respecting the operations of importation and exportation.

It was desired to make certain documents orima facie evidence in view of the difficulty of obtain- ing oral evidence on dertain points,

The intention of the Ordinance can be properly under- stood only by reading with it the orders-in-Council made under it, and copies of the Orders so made are accordin, ly annexed to this report.

In applying the white and Black List System to Hongkong there were two difficulties, a reference to which may help to explain some of the provisions adopted.

In the first piece, Hongkong has never had any general customs law or organisation, and accordingly before the out- break of war information regarding goods entering, leaving, and passing; through, the port was far from complete, and con- trol over such goods was slight except in a few special cases. The Military Stores Exportation Proclamations, and the various enactuents directed against trading with the enemy, gave more control, and the manifests required by the Certificates of Origin and Declarations of Ultime te Destination Ordinances increased the sources of information, but there was still no power to deal with any consignment which did not fall within one of the above enactments, however it might offend apeinst

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