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Hong Kong and its new territory to safeguard the

revenue interests of China, a task which will be made

in consequence of the increased area to be looked after, both onerous and expensive.

The proposals are made in the belief that Her Majesty's Government desire to give China liberal and sustained support in the protection of her revenue in that neighbourhood.

1. The right of the Chinese Customs to maintain

its office in Hong Kong, where it is now only unoffic-

ially acknowledged, ought to be formally admitted, and

the status of the Commissioner of Customs as a Chinese

official recognised.

The existing sub-stations at Changchow,

Capsuimoon, Lai-chee-kok, and Fotochow ought to be

maintained as at present, although they are in the

leased territory.

If it should be found that other

stations are required they may be instituted.

2. The Chinese Customs at Hong Kong shall have the right there to collect duty and 11-kin on any opium and similarly dues and duties on general cargo shipped

on any native vessel to or from China, The Customs

ought also to have the right to one or more specified jetties in proximity to junk anchorages at which cargo

may be examined and verified.

3. The Chinese Customs cruisers and launches may

contime to exercise their functions within the waters

of the leased territory.

4. No opium, raw or boiled, shall be landed or

stored, taken delivery of, or shipped in Hong Kong,

/British

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