PUBLIC RECORD OFFICE

Reference :-

TTICO. 882

اسيا

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PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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the neighbourhood of Hong Kong for its collection, and, producing a map, showed me the points where these stations were to be placed. I communicated this to the then Governor of Hong Kong, Sir R. G. MacDonnell, considering it was right he should know of the projected scheme. His Excellency, however, strongly opposed the plan, but, being unable to suggest any alternative, and the Chinese authorities having, in my opinion, a perfect right to collect their duties in any way they thought fit, provided it was not directed against the trade of the Colony, I told the Viceroy I had no objections to make to his project, but I trusted a strict supervision would be kept over the stations in order that nothing but the lekin tax should be levied at them, and, more particularly, no Customs daties of any kind. This was promised, and has been strictly observed. The success of the experiment was very great, junks leaving Hong Kong with large consignments of opium calling voluntarily at the stations to pay the lekin duty thereon,' rather than risk seizure and confiscation en route.

In time the Haikuan, or Superintendent of Native Customs, began to think that some such plan would benefit his department, and, accordingly, he bought steamers and built or purchased steam launches, and thus gradually established a pretty strong fleet of preventive cruizers, which keeps a strict surveillance over the approaches to Hong Kong.

I cannot do better than quote here, from the despatch I received from the Viceroy and Haikuan, a passage which will explain matters. They say-

"That formerly Chinese junks from various Prefectures, when voyaging to Canton, obtained grand chops from the ports in the neighbourhood of such Prefectures. Those going to outports either obtained their grand chop at Canton or else at various ports in Kuang Tung."

This regulation was exceedingly convenient to traders, and had the merit of simplicity; but for the last few years their frauds have been innumerable, and they have got into the habit of starting from out-of-the-way places, and never calling at the nearest Customs for a grand chop, but going straight to Hong Kong, where they disposed of their cargo, or transshipped it thence to out-of-the-way places, where it was smuggled to the markets. The loss thus entailed by the Customs revenue was so great that the former Haikuan, Toung, wrote a memorial to the Throne to be authorized to inaugurate an increased number of cruizers, in order to prevent smuggling and evasion of duties. It was certainly not without good grounds that these cruizers effected their seizures, for a rule was now established that all traders exporting foreign goods should go to Canton and report the fact and pay duties, and that, therefore, there should be no duties levied on foreign goods at any of the ports along the coast; and, consequently, vessels carrying foreign goods to any of the ports on the coast, other than that of Canton, should send an agent to Canton to report the amount of cargo, pay the duty thereon, and receive a grand chop, the pro- duction of which should effect the junk's release when stopped to be examined. If, however, a junk were found to be without a grand chop, it would evidently be evading the duties, and no resource would be left but to detain her for trial, and nothing short of this could have protected the revenue.

Such was the position when I brought the matter before the Viceroy, and told his Excellency that the system of junks bound up and down the coast paying their duties at Canton, where they had either to come or send an agent, was impracticable, and, rather than suffer the loss of time and expense of doing so, they risked getting out of Hong Kong without seizure; and the same might be said of junks bound to Hong Kong, leaving places on the coast, and being compelled to call at some port where there was a Custom- house to obtain a grand chop, and that, in fact, I considered it unjust to seize and confiscate them because of the existence of an impracticable law; that, however, was a purely Chinese matter, as regarded the junks generally, but when they were bound to or from Hong Kong, or said they were when captured, the Colonial Government forwarded their complaints to Canton, and a great deal of correspondence and trouble ensued both to the Hong Kong Government, the Chinese high authorities, and myself. It became necessary, therefore, that something should be done to meet this difficulty, and the method which appeared to me to be most effectual was to establish one or two Customs stations near Hong Kong, on the routes to the east and west coasts of the Province. At subse- quent interviews the proposition assumed a more definite shape, and will now be realized, as mentioned in the first paragraph of this despatch.

No one could be more unwilling than myself to see Hong Kong surrounded by Chinese duty stations, but there are two sides to the question, and if the colonists consider themselves aggrieved by the action of the Chinese authorities, the latter feel equally so, from the persistent and generally successful attempts of their countrymen to evade the payment of duties, and, if caught in the act, their appealing to the Colonial Government.

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for redress, under the allegation that they are engaged in trade with the Colony, or are owned by resident Chinese, both which averments, considering the amount of faith to be placed in Chiness where their interests are concerned, may be taken for what they are worth.

I trust, however, that the present arrangement will remove many of the objectionable features which at present exist and the doubts and difficulties which surround the question of seizures; and if hereafter the Colonial Government of Hong Kong makes it incumbent on complainants to show why they have not cleared at the stations en route, it will simplify matters exceedingly; and, above all, let it be proved by documentary evidence that the owners of the junks are residents in the Colony or regular traders therewith. It is right, of course, that the trade of the Colony should be protected, but it is not so that such protection should be abused to serve the purposes of a class of Chinese who frequent the Colony for the sole purpose of making what they can out of it, leave it when that is accomplished, and care nothing for the complications which may result. Moreover, the policy of protection carried beyond reasonable limits defeats itself (for it is met by reci- procity and increased stringency on the other side), and such, I hold, is the mistake the colonists have committed.

The Hon. J. Gardiner Austin,

Colonial Secretary, Hong Kong. Hong Kong, August 10, 1874.

(Translation.)

I have, &c.

(Signed)

Inclosure 6 in No. 2.

B. ROBERTSON, Consul.

New Junk Regulations made by the Viceroy and Haikuan.

1. EVERY trader shipping goods from Hong Kong to Chinese ports along the coast, must draw up a manifest, and take it to the nearest Customs station, where he will hand in a full report, pay duty, and receive from the said station a grand chop, bearing the seal of the Canton Customs. If his vessel should be overhauled by a cruizer, it shall at once be released on production of the said grand chop. Further, on arrival of the junk at

the port of destination, the grand chop shall be handed up; and if the cargo of the junk agrees with that stated in the grand chop, the grand chop shall be cancelled.

2. After a trader has applied to the duty station for a grand chop, bearing the seal of the Canton Customs, and has obtained it, if he conceals in the cargo unreported goods, or

if he takes in goods en route, or tries in other ways to evade duties, it shall be lawful for a revenue cruizer, in case of discrepancy between the amount of goods on board, and the amount entered on the grand chop, to seize such junk; and it shall be confiscated. If the discovery made at the port of destination, then besides the confiscation of the said junk, the offending traders shall be severely punished.

3. Traders proceeding from Chinese ports with cargo for Hong Kong, shall also send in a report to the duty station of the port of clearance, and shall pay duty, and be pro- vided with a clearance, which shall be produced for inspection when called for en route. Any refusal to produce the clearance, shall be considered as evidence of smuggling.

4. The agreement to allow small stations on the coast to issue clearances, is entirely come to for the benefit of traders, so as to obviate their having to come from out-of-the- way places to Canton to obtain them; and it is done in consideration of the distance of these ports. Hereafter, the being provided or unprovided with these grand chops or clearances, will be considered as the crucial test of all junks. If they are unprovided with such documents, or if their cargo exceeds the amounts thereon stated, they will be punished with the same severity as they were by the late regulations, and`no attention whatever will be given to violent agitations, or to complaints founded on false statements.

Sir,

Inclosure 7 in No. 2.

Colonial Secretary's Office, Hong Kong, August 4, 1874.

I HAVE the honour to acknowledge the receipt, on the 29th ultimo, of your letter of the 20th of June, having reference to the Customs stations near Hong Kong, and to

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