(r_31_1/52/10)

Conential.

Shanghai Office of the

Inspectorate General of Customs,

21. Hart aoad.

Shanghai.

8th July, 1929.

146

Dear Mr. Stephenson,

The application of the higher Tariff has

naturally resulted in an increase of smuggling, and

in order to protect Revenue interests as much as possible,

I have submitted certain proposals to the chinese

Government. I append hereto a translation of my general

recommendations on the subject, which have been entirely

accepted and approved.

In regard to the Frontier Guards, it

will necessarily take time to organise them, more especial},

as close investigation must precede action. Shen explai:

ing my views to the Linister of Finance a few days ago, I

mentioned to him that in order to ensure efficiency it would

be necessary, in my opinion, to provide for a mixed

Preventive Staff - Chinese and foreign. As you are aware,

sir F. Aglen was definitely instructed some three years ago

to cease recruiting foreigners for the Customs, and until

I was authorised recently to engage some foreign Tidewaiters,

onr recruiting of late has thus been confined solely to

Chinese.

when ir. T. V. Soon, Minister of finance, heard

what I had to say in this connexion, he informed me that

J.

. stephenson, Esq.,

Non-Resident Secretary,

London.

he

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