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D. Geletelor (Col. Ihmisen)

The Imports & Exports Department operates as (a) a revenue collection department and (b) a department for a modified form of trade control and as from November 1st the collection of trade statistics.

Liquor and Tobacco. The collection of revenue from liquor and tobacco in the form of duties and licences has commenced but owing to present conditions it will be some time before large amount of money in the form of Excise and Customs Duty will be collected. There are only small stocks of European and Chinese liquor in the Colony and it is doubtful when new stocks will arrive. A certain amount of beer will be produced in the near future and the production of Chinese spirit is very uncertain owing to shortage of raw materials (rice, molasses and coal). In 1941 we had nine large distilleries which produced spirit of this type but now most of these are closed though a few may reopen in the near future. There are, however, a large number of small Chinese type stills in shops, houses and sheds which will have to be closed down as soon as possible as it is impossible to control these establishments. Their number is about 200 and they each produce from four to possibly 20 gallons of native spirit per day. We are, in fact, as far as distilleries are concerned, back to the days before 1922 as regards small distilleries and the large establishments will need careful nursing. Licences will not be issued to the small establishments. The issue of licences to Chinese spirit shops is prodeeding and their number vill be kept within reasonable limits. There have been many applications for licences to deal in European type liquor and in view of the fact that most of those who have applied are obviously dealing in looted goods,none are being issued except to the old holders.

In 1941 tobacco was a more important source of revenue than liquor. There were three cigarette factories, four cigar factories

and about sex Chinese prepared tobacco factories. One cigarette factory is open and two will reopen in the future. About 1,000,000 pounds of tobacco are available for cigarettes though much of this is inferior grade leaf. The Oriental Cigar Factory is closed and three Chinese prepared tobacco factories are operating. The collect- ion of tobacco duty has commenced and supplies of raw leaf are expected in the reasonably near future.

Tobacco dealers' and retailers' licen- ces are being issued.

Trade Control. A system of water front patrols was commenced early in September with the object of ascertaining what types of cargo were moving on the Victoria waterfront and in Kowloon.

These patrols have been successful in several cases of attempted export of prohibited goods and in one particularly bad case the exporter was prosecuted and fined. The patrols are being expanded and much information is being obtained.

The Trade Statistics Department will reopen on November is and it is hoped to have reliable figures, covering goods imported

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