2.

3.

It has been suggested that the risk of

fraud is negligible compared with the advantages to

Empire trade. In the circumstances of the local

tobacco trade, however, I am advised that the risk of

frauds of this nature is very real and it would be an

invidious task to grant such drawback only to selected

manufacturers.

4.

I have therefore to request that the Board

of Customs and Excise be asked to give this Government

the benefit of their advice on the matter.

5.

All the tobacco factories in the Colony

are "open" and work with duty paid leaf only, and are

only subject to casual inspection from time to time.

Exports on drawback consist of cigars, cigarettes and

Chinese smoking tobacco.

6.

Copies of the drawback regulations and the

tobacco tariff are enclosed for reference.

I have the honour to be,

Sir,

Your most obedient, humble servant,

Governor, &c.

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