he would authorise me to engage as many foreigners (within

limitations, of course!) for Preventive work as I considered

necessary this scarcely confirms the dismal forebodings of

the inspired propagandists, who six months ago instructed the

British press that the foreign element in the Chinese Customs

would rapidly disappear!

What precedes refers to general Preventive measures,

but the special local conditions obtaining in the Hongkong

area call for the immediate strengthening of our Preventive

system in the adjacent waters, etc. When Mr. Soong was in

Hongkong a few weeks ago, the Governor, he tells me, intima-

ted to him that he is prepared to assist China to protect her

Revenue; and on the strength of this I have been instructed

to draw up a separate scheme for Hongkong and kacao for

approval, to proceed to these places, and enter into

negotiations with the Governments concerned with a view to

securing the cooperation and support of the respective

Colonial authorities in connection with our Preventive

Service, e to. hen the Kowloon territory was extended

in 1898, Sir Robert Hart pointed out to the Legation

(Vide China No. 1 (1899) Inclosure in No. 294) that China

should be permitted to retain certain Customs' Stations, etc.

originally outside, but which the extension, of course,

placed within, British waters, for the purpose of preventing

loss of Revenue by smuggling, etc., etc. The British

Authorities of the day, advised by the China Association and

the Hongkong Chamber of Commerce, rejected his proposals as

something derogatory to British prestige, and the Chinese

Revenue suffered accordingly! Since those distant days,

however, public opinion has changed, and the British

Government

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