The present nego- tations for the conclusion of a Hongkong Customs Agreement.
21.
SECTION 2 (0)
24.
In June 1929, the increase of smuggling consequent upon the increased tariff, particu- larly as regards kerosene oil, began to attract the close attention of the Chinese Government, and the Minister of Finance, Mr. T. V. 3oong, on a visit to Hongkong and Canton, discussed the
Sir matter with the Governor and Consul-General, C. Clementi was sympathetic, and willing to oo- operate within limits, but said that Hongkong would not deviate from the policy of maintaining itself a free port. He admitted however that smuggling was extensive, and bad for the rela- tions between Hongkong and Canton, and agreed with Mr. Soong that control of the junk traffic was what was wanted. Mr. Soong told Mr. Koss that the Chinese Customs would have to work out a formula of co-operation between the Customs
and the colonial authorities. Kr. Moss was care-
ful to say that any co-operation on his part
(p.394 in D 2 1929) would have to follow Hongkong's lead.
Smuggling round Amoy.
22. H.M. Consul at Amoy about this time reported the difficulties British firms were experiencing in placing foreign goods on the market, owing to diversion of trade from normal channels through smuggling. He said the centre of this smuggling industry was at dongkong, where syndicates had come into existence for the purpose of evading the Customs. Crude oil was loaded into motor junks at Hongkong, and the smuggling was confined to goods on which a high duty was payable. Consul thought that the only means of checking the smuggling was by a barrage of pickets along the coast, simil r to those of the defunct Surtax
/Bureau.
H.M.