Enclosure No. 3.

Translation of Memorandum submitted to the

Ministry of Finance, and since approved.

The Inspector General has already invited the attention of the Kuan-vu Shu (Customs' Board) to the question of the Customs' Preventive Service, in view of the fact that smuggling will be almost certain to increase, owing

to the introduction of the new Tariff, and thus scriously affect Revenue interests: it being obvious, of course, that

the higher the Tariff the greater the inducement to evade payment of Duty by smuggling. To meet the changed conditions and to endeavour to protect the Revenue, the Inspector General is of opinion that the question of

devising means to stop, or at least check, smuggling should

now be contrived, and, if approved, certain preventive measures should be inaugurated forthwith. The principal places which have to be specially guarded arc:

(a) the Tonking Frontier

(b) Kuangchow-van

(c) the Kowloon and Lappa Districts

(a) the Korean Frontier, and

(c) the Russian Frontier.

The

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