776
Under present conditions if undeclared duti-
-able articles are discovered by the Chinese Customs at the Kowloon Terminus or other British Station the consignor or person in whose effects the articles are found must be allowed to take
them away. In Chinese territory the consignment or articles would be seized and held until the duty with in some cases a fine is paid.
What is proposed in sub-clause (g) would, it
is true, necessitate legislation of a somewhat unusual nature. On the other hand for the concession, which I submit is reasonable,
I have reason to believe that the Chinese Customs would allow duty which is prepaid at Kowloon or other British Station and calculat- -ed in Hai Kwan taels to be converted into Dollars at the rate of the day, as by old established custom is done on goods arriving by stemmer at Canton, instead of at the fixed rate which strictly is leviable under Treaty.
It happens that the fixed rate is very much higher than the normal rate of the day and the result is that the duty on rail-borne goods is very much higher than that on water- -borne goods. It is, therefore, greatly to the interest of the
railway to obtain the concession indicated.
7.
I should be glad to receive your instructions
on paragraphs 3, 4 and 6 of this Despatch by telegraph.
I have the honour to be,
Sir,
Your most obedient,
humble servant,
Governor,&c..