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private talk with him regarding these constant and heavy

fines. He seemed to welcome information on the point and

remarked that in a famous circular of Sir Robert Hart

issued many years ago it had been laid down that quite frequently a nominal fine would be sufficient. I was

not therefore much surprised to learn a few days ago confidentially from the Commissioner of Customs, Mr.

Klubien, that instructions had been received from the

Inspector-General that whenever possible a nominal fine should be inflicted in future. There is hope then of the present unsatisfactory position improving.

I have, etc.,

(Signed) Herbert Phillips.

Consul-General.

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