Chamber of Commerce,

Manchester,

23rd July,1930.

407

Dear Sir Horace,

I am desired by the Chairman of the China and

Far East Section of this Chamber to say that the

question of the smuggling of Japanese piece goods

into China, through Hong Kong, was discussed at a

recent meeting of the Executive Committee of that

Section.

A member of the China Committee had received a

report which alleged that, over a period of a few

months, cotton textiles, mostly of Japanese origin,

to the value of two million dollars had passed into

consumption in China by unlawful means. It is said

that most of the goods find their way into the

Province of Kwantung and are sold in Canton at prices

identical with those ruling in Hong Kong. The state-

ments made are that, by a clever system of smuggling,

large quantities of goods evade the Customs in Hong

Kong, with the consequence that the legitimate trade

in British textiles is suffering a serious disadvantage

because of the prices at which the Japanese goods are sold.

My Committee have no means at their disposal to

check the accuracy of these statements, but they were

of the opinion that H.M. Government should be notified

immediately so that enquiries could be made through

appropriate channels, with a view to the fullest possible

Sir Horace Hamilton,

Board of Trade. Great George Street, LONDON.S.W.1.

investigation

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