COPY

55 in 3590/1915.

Sir,

Enclosure

1.

249

Government House,

Hongkong, 14th. December, 1915.

With reference to the conversations which I had recently with the Senior Naval Intelligence Officer, I have the honour to inform you that if desired I am prepared to make the following arrangemente to facilitate the obtaining of information concerning the illicit smuggling of arms from China and especially from Shanghai to India as I feel sure that the search by the Hong Kong Police of laden steamers which might convey direct or indirect- -ly to India is not likely to lead to any successful discovery at this Port, and I know that the only way of dealing successfully with smuggling in large steamers is to buy information by high rewards for result.

2.

The rewards for information leading to seizures

made in Hongkong are as follow:-

For Modern Arms of Military valua in mod condition. (a). For arms (or ammunition for modern arms) to the value

of 8500 or less half the fine imposed by the Magist rete or half the wholesale market value of the arms whichever

is the greater.

(b). For Arms (or ammunition for modern arms) of a greater

value than £500, a reward of not less than half the wholesale market value of the arms (or ammunition). This reward may be increased according to the merits

of the case.

Modern arms of Military value are usually valued

as follows:-

Rear-Admiral R. H. Anstruther, C.M.G.

Mauser

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