E 3-
the Harbour first, the sampan then moves as far as the rope allows and then drops the other jar. The position is noted by some leading mark on shore, and when the Spirits of Wine are required, a dredging boat is employed to dredge to and from at the spot indicated until the connecting rope is picked up. The favourite dumping ground was at Yau Ma Tei near the breakwater.
5. There was a slight decrease in the number of Chinese Wine and Spirit licences issued, since steps were taken not to grant any new licences where there were already existing licensed premises in close proximity, and certain licences were not renewed where the firms had been detected in frauds on the Revenue.
5.-European Liquor.-(a) European Liquor showed a decrease of $59,521.77 returning practically to the figures for 1926; this decrease is accounted for by the great decrease in the strength of the "Sha" Force.
(b) There were several seizures of bogus Hennessy brandy, and in a few cases the actual makers were caught. Genuine empty Hennessy brandy bottles are bought and filled with dilute commercial alcohol which has been smuggled in from Macau; colouring and flavouring essence are added, a new cork with the name printed on, instead of burnt in, is inserted; the bottle is finally closed with a forged capsule and neck label. To afford a further proof of genuineness, Macau Tobacco Duty labels are placed over the capsule, to give the appearance of having paid Hong Kong duty; the Macau Tobacco Duty labels being very similar to the label used by this Department for duty-paid European Liquor, so that the one can easily be mistaken for the other at a short distance.
6.-Legislation.-A considerable amount of time was devoted to the consideration of a draft ordinance to effect much-needed improvements in the present liquor ordinance, and the draft was published at the end of the year. An extensive revision of the regulations made under the Liquor Ordinance was also undertaken. It is hoped to obtain the necessary legal sanction for these revisions in the near future.
7. An appendix gives an outline of Chinese Distillery practice; these methods will probably soon be past history, so far as this Colony is concerned. The facts given are the result of 4 years of intensive study and experimentation.
II. TOBACCO.
1. Duties on Tobacco showed very little change as compared with 1927, the total amount collected being only slightly higher.