33
themselves interested in the contraband traffic (Dr. T. V.
Soong recently informed me with a smile that the brother of
General Chen-tsai-tong was the head of the smuggling
organisation!); and that, so far as British shipping is concerned,
the position is further complicated by the long standing
practice of British ship-owners permitting the Chinese
members of their crews to carry "pidgin" cargo and the lack
of effective control exercised over these Chinese crews. Sir
William Peel also points out that smuggling is not normally
an offence in the country from which the smuggling emanates,
and that it is for the country into which the goods are smuggled
to defend its boundaries.
The Hongkong Government have never-
theless taken action to the extent of enacting legislation
under which the import into and the export from the colony of
unmanifested cargo, or the placing of any cargo on board any
ship in the colony without the consent of the owners or masters,
are prohibited. The Colonial Authorities look, however, to
the Shipping Companies to take the initial step of detecting
unmanifested cargo, after which they are prepared to take
the necessary action.
4. On my way through Hongkong en route back to China in
the middle of January I discussed this question of smuggling
with His Excellency the Governor, when Sir William Peel
explained the nature of his difficulties and the action he had
taken in the matter. It was clear from our discussions that
by far the best solution of the problem lay in the conclusion
of the draft Customs Agreement, which had been blocked by
opposition from the Cantonese. I undertook to raise the
question during my impending visit to Canton, and, as reported
in my despatch No.183 of February 14th, I broached the
subject with the Chairman of the Provincial Government and
Marshal Chen Chi-tang (Chen Chai-tong) at an interview on
January