- 4-
92583/15/32
92583/151/52
cargo has been discovered; and it is hoped that a
satisfactory modus operandi will be reached on these
lines.
I enclose for your information a copy of Regulations recently made to implement the provisions
of Ordinance No. 14 of 1932.
7.
With regard to Messrs. John Swire and Sons
Limited's suggestion that the object of the Customs in inflicting fines on British shipowners is to put indirect pressure on this Government, the Government
has reason to believe that the object was in fact to force the owners to exercise proper control over their
own employees. Similarly the Police and Revenue Departments have failed to discover proof of the existence of "powerful smuggling organisations", all available evidence pointing to the Chinese compradores and crews of ships as being principals in the matter.
8. Finally it must be remembered that
smuggling is not normally an offence in the country from which the smuggling emanates, and it is for the country into which goods are smuggled to defend its
boundaries. At the same time this Government is
fully alive to the dangers of allowing Hong Kong to become a base for smuggling and has had many discussions with the local authorities of the Chinese Maritime Customs as to the best means of helping them. The Government has already travelled to some extent outside its normal sphere of activity in passing Ordinance No. 14 of 1932 and the regulations thereunder. In this matter it looks to the shipping companies to
take
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