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the land Frontiers mentioned above, examine local conditions
on the spot, ascertain, in consultation with looal Commis-
sioners, the estimated extent of smuggling now taking place
along these Frontiers and likely to take place in the neigh-
bourhoods concerned in the future, and draw up preventive
proposals calculated to deal effectively with these local
conditions, and thus protect Revenue interests. In the
Inspector General's opinion, Frontier guards, at the begin-
ning at any rate, should be composed of both Chinese and
foreign units. This may add to the expense, but it must be
remembered that we are endeavouring to protect an annual
Revenue of about Hk.Tls.160,000,000.-
and if trade develops
normally perhaps Hk.Tls. 200,000,000.-, and reasonable extra
expenditure is therefore justified: in fact will in the end
prove economical.
To summarise what precedes:-
(1) The new Tariff has naturally given an impetus
to smuggling, and the Customs, therefore,
should develop their Preventive Service to
stop or check the increased smuggling now
observable;
(2) Armed guards on the Tonking, Howloon and
Lappa, Korean and Russian Frontiers will
be necessary;
(3) The Customs Preventive Launch Service in the
Kowloon and Lappa Districts should be re-
organised, if necessary one or two larger
Vessels should be provided, existing Launches
should be effectively re-armed and protected
by