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In
prevent smuggling of goods from Hong Kong into Chinese
territory, I think it very necessary to emphasize the fact
that the increase in smuggling, which, it is alleged, has
recently taken place, cannot justifiably be made a charge
either against the Government of Hong Kong or against British shipping companies trading from this Colony to China. So long as the Chinese Government collected its customs duty upon the basis of the tariffs prescribed by the old treaties, which had existed for several decades, and which
in the main contained duties not exceeding 5% ad valorem, little was heard of smuggling from Hong Kong to China. fact, of late years the smuggling of opium and of Chinese spirits from Chinese territory into this Colony has been a far more serious problem and has very adversely affected the revenue of Hong Kong. When, however, as from the beginning of last year, the Chinese tariff was very considerably increased, while at the same time the Chinese Government took no steps whatever to improve its coastguard service or its customs preventive administration generally, the Chinese who are expert smugglers, at once seized their opportunity; and it is, I submit, altogether unreasonable to suggest that the burden of preventing smuggling from Hong Kong to China should be laid upon the shoulders of the Hong Kong Government or upon British shipping companies, so long as the policy of the Chinese Government is to increase its tariff to the utmost, while incurring scarcely any additional expense for protecting its revenue against Chinese smugglers, whom its own action has stimulated and multiplied.
I have the honour to be,
My Lord,
Your Lordship's most obedient, humble servant,
ments
Governor. &c.