Enclosure No. 5.

Government House,

Hong Kong 12th August,1927.

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The island of Hong Kong Lics much closer to

the mainland of China than the Isle of Wight to England. The eastern entrance to the harbour is only 600 yards wido, and, until 1899, the whole northern shore of the harbour was under Chinese jurisdiction. So it was a

very easy latter for jucks to slip from British Chinose waters and, as Hong Kong was a free port, it inevitably became the centre of an active muggling

trade into Chize,

Oussião the vators of Hong Korg,

in the early days of its hirtory, fiscal jurisdiction was exercised by the Canson hoppe (Tch i-kuon a ), or

Administrador of the Canton Customs.

This official

was a direct representative of the Emperor and entirely outside the provincial hierarchy, taking rank with, but after the Viceroy of the tang Kuang provinces. He pas in charge of all the customs vifices in the provinca of Kung-tang. The customs dutie3 airl their ovesion concernce him, arby 3 representing his government, but much rong in the Interest of his own pocket.

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