COPY

A

Enclosure in Canton despatch No. 87 of July 24th, 1929.

Sir,

British Chamber of Commerce,

491

Canton, July 17th, 1929.

I have the honour to acknowledge receipt of your letter of the 2nd instant covering copy of a despatch from

His Majesty's Consul at Amoy with reference to the effects of

the increase of smuggling from Hongkong into China as it

affects British firms, which this Chamber has read with

considerable interest.

In the opinion of this Chamber Hongkong is certainly

benefitting by the smuggling which is the obvious result of

the increased Maritime Customs Tariff. Kerosene is being

smuggled in considerable quantities and wines, spirits and

beer are also evading duty. Owing to the short period

in which the new tariff has been in operation this Chamber

is unable to determine effects on British trade at this

port but there can be little doubt that smuggling must, in

course of time, seriously affect the local British merchant.

This Chamber trusts that steps will be taken by the

Nationalist Government to protect their revenues by a

Preventive Service or other efficient means.

There is also the danger that unreliable firms regis-

tered as British will deal direct with home manufacturers

through Hongkong and owing to their questionable business

methods may be the means of bringing British trade into

disrepute unless smuggling is checked.

I have, etc.,

(Sa) G.M.D.D. Wolf.

G. S. Moss, daquire, C.B.E.,

H.B.M. Consul-General.

Canton.

Chairman

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