233
SECTION 2 (c)
24.
The present nego- tiations for the conclusion of a Hongkong Customs Agreement.
(p.394 in D 2 1929)
Smuggling round Amoy.
21.
Sir
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. Soong,
on a visit to Hongkong and Canton, discussed the
matter with the Governor and Consul-General.
C. Clementi was sympathetic, and willing to co-
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. Moss
that the Chinese Customs would have to work out
a formula of co-operation between the Customs
and the colonial authorities. Mr. Moss was care-
ful to say that any co-operation on his part
would have to follow Hongkong'a lead.
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 Hongkong, 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, similer to those of the defunct Surtax
/Bureau.
H.M.