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Customs organization should eventually be taken over by, or

absorbed in, the Maritime Customs Administration. Whether

such a development will, under existing conditions, tend to

strengthen the position of the latter administration seems to

depend largely on the extent to which the central government is

able to tighten its control over the regional authorities, a

process which is at the moment receiving a setback.

4. It is to be noted from Mr. Hayley Bell's report that

he confiscated several Japanese motor craft on the ground of

their being vessels of foreign nationality engaged in the direct

traffic between foreign and Chinese inland waters. Kr. Bell

points out that to look to such an antiquated system as the

existing Native Customs administration to enforce the present

import tariff is absurd, though he doubts whether smuggling is

availed of to the extent that might be supposed, owing to the

heavy risks involved from piracy afloat and banditry ashore,

to say nothing of extraneous forms of taxation and lack of

good communications between coastline and towns. The Pukion

delagate with the party thought there was scarcely any

smuggling in his province owing to lack of money. These

considerations led är. Bell to conclude that preventive

acasures would not be so expensive as he had thought, but that

the first step was for the Maritime Customs to take over, or if

that would create illwill, to improve the liaison with and to

give financial assistance to, the Native Customs offices. Ke

also thinks that the Chinese Government should define its

attitude more clearly towards the junk traffic from foreign

ports, and should treat motor vessels consistently as steamers.

He advocates the division of the whole coast line from the Yalu

River to the Tonkin frontier into districts under the definite

control of the Superintendents of Custome.

6. M. Bell's recommendations have a certain bearing on

the problem of the Hongkong Customs agreement, and one cannot

resist the thought that, in the Hongkong area also, the

chinese

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