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for duty at Hong Kong in order to search their outgoing

steamers, and a further search is made, usually by the chief

officer, when a ship has got well out to sea. Such a search

is, of course, in reality no part of the duties of a ship's

officer, and it imposes a considerable burden upon him in

stormy weather, when all the officers are expected to attend

closely and continuously to the navigation of the ship. It

is difficult to see what further steps shipping companies can

take, and for this reason they strongly resent the imposition

of fines on their ships when smuggled goods are detected on

board.

9.

Customs fines amounted, in the case of Messrs.

Butterfield and Swire, the principal company whose ships call

regularly at Amoy, to about six thousand dollars during the

eighteen months ended the 31st December last. They have,

however, been much less frequently levied of late, and have,

as a matter of fact, not been paid at all during the last two

or three months. The shipping companies have, on my advice,

recently refused to pay them, but are prepared to hold the

Customs by the terms of their annual guarantee bonds. The

highly objectionable claim of the Custom to be possessed of

both executive and judicial functions has, however, not been

withdrawn, and so the way is left open to the continuance of

the abuses hitherto existing.

10. The main conclusion to be drawn from the present

state of affairs is that the Customs preventive service is

inefficient; the obvious step, in order to prevent loss of

revenue, is to take more active measures to prevent smuggling

from parts other than Hong Kong; it is true that additional

armed steamers are bing built, but they can succeed only by co-

operation with an efficient coastguard service on land.

Possibly, however, the objection to the institution of such a

service is that it would be too much subjected to powerful

influences on shore; a case has actually come within my

knowledge

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