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(6)

(6)

Its effect would be to promote the smuggling of salt from

China into Hong Kong. Before seeking our assistance the

Gabelle should enforce its tax of $2.50 per picul at the

sources of production within its own territory.

Apart from the possibility of their attracting salt-using

trades away from Hong Kong, Macao and Kwong Chau Van are

almost certain to defeat any measures which Hong Kong may

take for the protection of China. It is so with opium.

Hong Kong makes strenuous efforts to prevent any opium,

even her own "Government" opium from reaching China. Mean-

-while the Macao Farmer openly boils large quantities of

opium "for export" to destinations not stated, but none

the less obvious and Kwong Chau Wan sells several hundred

chests of raw opium annually to a population which probably

does not smoke a chest a month. Kwong Chau Wan appears to

produce considerable quantities of salt and Macao can draw

precising

from her and as indicated in the e/paragraph, from China.

For the credit of British administration Hong Kong will, of

course, be bound to administer the salt-law whole-heartedly

once it is passed. China, on the other hand will shew no

such zeal. The Gabelle will no doubt do its utmost, but

other Chinese departments will not. A few months ago a

prominent opium-monger was able to defeat our precautions

and those of the Chinese Maritime Customs by procuring

gunboats belonging to some Chinese department to carry raw

opium to Canton. It will be the same with salt. It is

in fact notorious that Chinese official craft are constant-

-ly smuggling salt. A memorandum on salt-smuggling in the

Kongmun District, forwarded to His Excellency the Governor

by Sir Richard Dane under the date 28th. April 1915 con-

-tains the following statement by the Tidesurveyor at

Kobgmun:-

"Events and personal observation have proved to me

"that the extensive salt-smuggling carried on in this

district

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