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time and place to collect, whereas a similar tax imposed in
Hongkong would be collected in full; with the obvious result
that the smuggling of salt from China into the Colony would be
resorted to on m extensive scale. It must also be remembered
that the interests of the Gabelle are not necessarily identical
with those of other Chinese Departments, as is instanced by
the fact that river gunboats controlled by the Government at Canton have played an active part in the smuggling of salt
from Hongkong.
4.
It would be difficult to demonstrate to
Macao and Kwongchauwan any practical benefit that would accrue
to them from concerted action with Hongkong; and separate and
independent action on the part of this Colony must, as shown in the memorandum by the Superintendent of Imports and Exports, tend to drive important salt-using trades away from the port.
A further objection which in my opinion is
5.
so serious that I can only express my surprise that the propos- -al was ever put forward is that the suggested tax would very greatly increase the cost of foodstuffs to the poorest section of a community in which 'poverty' is not merely an exaggerated phrase for small means' but means existence on the border
line of starvation.
In no circumstances can I agree to the
imposition of such a tax.
6.
It would doubtless be possible to include in the draft agreement conditions for the control of salt, not involving taxation, which would effectively prevent smuggling from the Colony, and if Your Lordship is unable to approve my recommendation that the negotiations should be abandoned, I am prepared to agree to their continuing on those lines. Such control would, however, involve the Colony in expenditure for which it would receive no return since in present circumstances the advantages which would accrue to the Colony from the agreement are nebulous.
7.