with a view to ensuring payment of duties in
dus co tc on arrival at Chinese Ports. He still maintained
attitude that Canton trade would suffer and expressed
opinion that best way would be to increase their excise
officers on boundaries.
There seems to me to be no doubt that interest or
Chinese officials in smuggling and in Chungshan scheme,
which seems quite unsound, are responsible for tum of
affaire. I consider that we are in a strong nosition.
We have shown our readiness to assist Customs in checking
possible amuggling through Hong Kong and have offered
considerable concessions embodied in an agreement which
was acceptable to their Minister of Finance and Inspector
General. Agreement appears to have been rejected without
suggesting any counter proposals.
52