Appendix E.
REPORT OF THE SUPERINTENDENT OF IMPORTS AND EXPORTS FOR THE YEAR 1939.
I. GENERAL.
1. In order to meet the need for economy in the use of paper during war time efforts have been made to condense the contents of this report as much as possible. In particular the tabular appendices have been revised and compressed and in some cases this has entailed the disappearance of certain items of information which were formerly shown under separate headings. Full information in terms of the old tables is, however, available and may be obtained on application.
II. LIQUOR.
2. The net revenue derived from liquor in 1939 was $3,564,848, which is $443,884 more than in 1938. Of this increase approximately 60% is attributable to receipts from duties on native type liquor and is the result of the abnormal increase in the numbers of the Chinese population of the Colony. The increase in revenue is divisible between duties paid by local distillers and duties paid by importers in a ratio of, roughly 2:1.
3. The remaining 40% of the net increase is accounted for by receipts from duties on European liquors, but nearly one third of this is chargeable to duties on spirits of wine and spirituous liquors. Among potable liquors, whisky, brandy and imported beer show the biggest gains, but the last item must be offset by a decrease of $28,786 in the duty paid by the local brewery. The consumption of gin and cocktails also shows a slight decrease, (1,405 gallons) as compared with the previous year.
4. The rates of duty on European wines and spirits were materially increased by a Resolution of the Legislative Council on the 12th October, but in view of the large stocks of duty-paid liquor on the market at that date it is doubtful whether the revised rates have had any appreciable effect upon the revenue figures under review.
5. As compared with last year there has probably been a slight increase in smuggling of Chinese spirits into the Colony, a consequence of improved opportunities for transportation and of the fall in value of the Chinese dollar which has increased the smugglers' margin of profit. It cannot be said, however, that evasion of duty by this method has attained serious proportions, or that the problem of smuggling by importation is in any way comparable to that presented by illicit local distillation. The latter has continued to be a source of constant trouble throughout the year and has necessitated continuous vigilance and counter measures in the shape of patrols and raids on suspected villages.
6. It is not possible to speak with certainty, but the fact that only 89 illicit stills were seized as compared with 165 in 1938 may perhaps indicate that these repeated raidings are having a deterrent effect. On the other hand it must be remembered that the local "moonshiner" not only enjoys the advantages of a hilly and inaccessible terrain liberally provided with observation posts and hiding places, but is also in the fortunate position of requiring no expensive apparatus for the prosecution of his trade. The seizure of a still, unless accompanied by the seizure and confiscation of a fairly large quantity of fermentable material, does not inflict a very heavy loss on the distillers. In this connexion it may be mentioned that towards the end of the year there were signs that the rising cost of rice was seriously affecting the profits of this illicit trade.