Enclosure No.
5
Butterfield & Swire.
Sir,
33
HONG KONG 17th January.1930.
CONFIDENTIAL
I have the honour to reply to your letter of 11th December
last (No. 5998/1929.c.) with regard to what effective steps can be
taken to reduce the evil of smuggling on British ships in Chinese
Territory in order to justify the insistence upon immunity of
search except at the hands of the Chinese Maritime Customs, and
to express regret for the delay in replying, due to obtaining
direct confirmation of the current position in regard to this matter,
hich has been the subject of serious deliberation and correspondence
between our offices at Shanghai and H. B.M.'s Consul General there.
Sum arized, it is to the effect that by searches, sealing
possible hiding places on ships, publication of Customs rewards,
and gener:lwatchfulness, British owned Ship, ing Companies are doing
all that they possibly can under e xisting conditions and within the
limits of reasonable s afety to life and property, to prevent smug ling but their efforts are greatly nullified and often flagrantly
encouraged by the inactivity of the Chinese Maritime Customs, the
deliberate placing on board and removal of opium by armed soldiers, and the disregard, if not the actual concurrence of Provincial
Chinese Authorities themselves.
We fully realise that it is in theinterests of the
Shipping Companies to suppress smuggling of any kind on their
stea ers, but the difficulties of prevention are continually being
increased by the action, and inaction, of the Chinese Authorities
themselves.
Definitely and frequently, opium is brought alongside British steamers on the Yangtsze ins ampans by armed parties, under whose supervision it is put on board. The atteni on of the Customs searchers is repeatedly drawn to the fact that there is
reason to suspect opium being on board, but no real effort is