276
The 1spector General's Jeoretary, for exam le, found that the
shops in Kongmoon have three times as much foreign Piece Gooda
as the Eongmoon Customs Meturns show! Now can this serious
leakage of China's Revenue be stopped? I ̧ is absolutely
impossible to a top or even effectively check smiggling between
Hongkong and China unless the Chinese Customs are permitted
to function in Hongkong itself in the umaner proposed in the
Agreement. It is imperative, therefore, that we be placed
in a position to control the cargo at the source - Letea in
Hongkong itself.
is very wide - how can Custome'
launches find the smuggling junks, sailing without lighter on
the broal sea at night? e mist, therefore, examine and con-
trol them in Hongkong before they sail from Hongkongi
This
is the only solution of the most serious situation brought
about by the application of the new Tariffi
It may be urged that if the Agreement is sanctioned
Nongkong will prosper at the expense of Canton?
This is
utterly fallacious reasoningi Hongkong is not a consuming
centre and haver will be - it is merely a distributing centre,
Canton city, on the other hand, is a consuming centre; and
is also the distributing centre for the Frovinces of Kwang-
tung and wengai. Apart altogether from the Agreement,
however, there exist physical reasons which will always
result in keeping Hongkong the main distributing centre før
foreign goods destined for South Gina; and these physionl
reasons are the shallow water at Canton and Magao, and the
deep water at Kingkong. Large coean steamers cannot
possibly pressed to either Vanton or Masao, and are compelled,
therefore, to land on route foreign cargo intended for South
China in Bengkong - for subsequent transhipment to Santor
etc.
Andg
Hongkong, therefore, can never displace Canton.
moreover, the greater the amount of onrgo arriving in Mong-
keng for, or from, China, the grotes the benefit to dhinai