But see HK ordre

?

No 14071932:

to the extent of about 50% of the total consumption whereas

38

for goods paying over 25% ad valorem in duty it is doubtful if as much as 10% to 20% of the total consumption is regularly imported." (Bradley and Company).

5. Coming now to the British shipowner and his

comparatively small responsibility for smuggling, it is the fact

that he is absolutely at the mercy of the Customs by reason of

the terms of the Annual Guarantee. In return for "the privilege

...

of working cargo

at the Custom House and presentation of Consular Report", the shipping company agrees: "Once at least during each passage of

such steamer, a careful search shall be made with a view to discover any opium, Salt and/or other contraband or smuggled

and that all

in advance of (the steamers') formal entry

goods

...

the first port".

...

shall be delivered to the Customs at

Certain ship's officers have objected that to

leave the grilled portion of a ship while at sea is to run the risk of being held as a hostage by pirate-passengers.

Messrs.

Butterfield and Swire do not regard this as a serious risk and

will undoubtedly insist on more and more thorough searches being made, if the present scale of fines is continued. The

officers share in the seizure money, on handing over to the Customs what they find, but they do not, of course, have the advantage of the secret information possessed by the Customs.

A special China Navigation Company preventive officer searches China Navigation Company's. ships before departure from Hongkong.

6. I cannot believe that Messrs. Butterfield and Swire seriously hope that the Hongkong Government will carry out effective preventive work at great expense, after the Customs Agreement has been jettisoned by Cantor. At the same time, it appears strange that a ship-owner has at present no legal power in Hongkong to seize unmanifested goods, unless they are locally

dutiable.

7.

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