COPY.
Enclosure No.1.
The Honourable
The Colonial Secretary,
HONG KONG.
Kowloon No.1537/ H.K. Gov't.
Office of Chinese Maritime Customs for
Kowloon and District,
4th Floor, Marina House,
15-19 Queen's Road Central.
Hong Kong 9th April, 1940.
16
Sir,
The Hongkong Government for many years past
have demonstrated, both in word and in deed, their desire
to institute such measures as are possible to mitigate
smuggling from Hongkong to China and thus protect China's
revenue and assist her in the prevention of the importation
of contraband goods, and, in this knowledge, I have the
honour to approach you on the subject of the immense volume
of smuggling, especially of kerosene oil, into the Mirs
Bay districts, that has grown up in the past twelve months.
The hostilities unfortunately prevailing in
China, resulting in the destruction of both railways and
highways, have caused a deflection of trade from the normal
routes to new channels, not least among which are those
leading to the hinterland through Shauchung in Mirs Bay;
at this latter place there has been witnessed a growing
and healthy trade between Hongkong and China, which it has
been the aim of the Chinese Customs Administration to
foster and encourage, but, as a counterpart of this
legitimate trade, smuggling has followed, although of
course at points of entry in Mirs Bay other than Shauchung
or those authorised for foreign trade. At first it did
not assume undue proportions and was of the normal kind
between conterminous countries with which the Chinese
Customs Administration are well able to cope, but the ease
with which smuggled goods may be transported to any place
of landing in Mirs Bay without interference by the Customs
the waters of the Bay being British up to high water mark
has so encouraged this illegal trade that it has gone
beyond my control, to the grave detriment not only of