CO882-(4-5) — Page 484

PUBLIC RECORD OFFICE

Reference:

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C.O. 882

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5 PUBLIC RECORD OFFICE, LONDON

14.

limits fixed for the movements of Maritime Customs revenue-cruisers on prevention duty shall remain as they are; otherwise an additional regulation must be made laying down how duties are to be paid on goods carried by Chinese junks and West River steamers (at a point) near Hong Kong; or the Hong Kong Harbour Master should send the manifest of each vessel entering and leaving to the Maritime Customs without delay, for purposes of supervision. If the Kowloon boundary is extended the Maritime Customs will have to add to the number of branch stations, and the British authorities should be asked to defray the cost of building them.

As regards Customs matters, the Hong Kong authorities should be asked to recognize the Kowloon Commissioner as an (or the) officer appointed by China, treat with him amicably, and give him every assistance.

As for boundaries, the limits of water demarcation should be carefully defined, and each country should administer the waters belonging to it. But if a vessel pursued by a revenue-cruiser on account of smuggling or other breach of the law should seek to escape by passing the boundary, both countries shall allow the pursuing cruiser to follow up the vessel across the boundary, in order to put a stop to "hide-and-seek" abuses.

The Prince and Ministers have the honour to place the above proposals, which have been submitted by the Inspector General of Customs, before Sir Claude MacDonald, that he may inform Her Majesty's Government, and that the Governor of Hong Kong may be instructed to let the British officials concerned know that zealous assistance should be given (to the Maritime Customs).

It is expected that the revenues of both countries will reap advantage, and it is confidently hoped that the friendly relations existing between them will become all the more intimate.

The Prince and Ministers avail, &c.

MM. LES MINISTRES,

Sir C. MACDONALD to the TSUNG-LI YAMEN.

(Seal of Yamên.).

Peking, June 10, 1898. In reply to the Yamên's note of the 29th May, with reference to the assistance to be given to Chinese Customs authorities at Hong Kong, I am telegraphically instructed by Her Majesty's Government to assure your Highness and your Excellencies that as soon as the territory leased under yesterday's Convention has been handed over, the Hong Kong Government will take all possible precautions to prevent it from being used to facilitate smuggling into China, or in any other way detrimental to Chinese interests.

The Yamên will recognize that it may be difficult at once to organize adequate police measures, but the Colonial authorities will be definitely instructed to use their best endeavours to fulfil this undertaking.

While communicating the above for the Yamên's information,

19209.

No. 20.

I avail, &c.

CLAUDE M. MACDONALD.

FOREIGN OFFICE to COLONIAL OFFICE.

(Received August 25, 1898.) [Answered by No. 23.]

SIR,

Foreign Office, August 24, 1898. WITH reference to previous correspondence on the subject of the extension of Hong Kong, I am directed by Mr. Balfour to transmit to you, to be laid before Mr. Secretary Chamberlain, copy of a despatch from Her Majesty's Minister at Peking, on the assistance required from the Hong Kong Government by the Chinese Customs Authorities.

Mr. Balfour would be glad of any observations Mr. Chamberlain may have to offer on Sir R. Hart's suggestions.

I am, &c.,

FRANCIS BERTIE.

15

Enclosure in No. 20.

(No. 139.) MY LORD,

Peking, July 4, 1898. REFERRING to my despatch, No. 130, of June 23rd, to Your Lordship, I have the honour to enclose copy of a letter which has been addressed to me by Sir Robert Hart, on the assistance required from the Hong Kong Government by the Chinese Customs Authorities.

A copy of this letter is being sent to the Hong Kong Government.

In accordance with Your Lordship's telegraphic instructions of June 23rd, I have instructed Her Majesty's Consul at Canton to give the Hong Kong Authorities every assistance in the directions indicated by Your Lordship,

The Marquess of Salisbury, K.G., &c., &c., &c.

SIE,

have, &c.,

CLAUDE M. MacDonald.

Inspectorate General of Customs,

Peking, June 27, 1898.

I HAVE the honour to acknowledge receipt of Your Excellency's despatch of 24th June, informing me that you have received a communication from Her Majesty's Secretary of State for Foreign Affairs, asking you, in view of the recent leasing to Great Britain of part of Kowloon Peninsula and the adjacent islands, what arrangements the Imperial Maritime Customs of China would propose, and where stations would be placed, and in reply to state in the following numbered paragraphs what, in my opinion, will be necessary in and around Hong Kong and its new territory to safe-guard the revenue interests of China, a task which will be made, in consequence of the increased area to be looked after, both onerous and expensive. The proposals are made, in the belief that Her Majesty's Government desire to give China liberal and sustained support in the protection of her revenue in that neighbourhood:-

(I.) The right of the Chinese Customs to maintain its office in Hong Kong-where it is now only unofficially acknowledged ought to be formally admitted, and the status of the Commissioner of Customs as a Chinese official recognized.

The existing sub-stations at Changchow, Capsuimoon, Lai-chee-Rok, and Fotochow ought to be maintained as at present, although they are in the leased territory. If it should be found that other stations are required, they may be instituted.

(II.) The Chinese Customs at Hong Kong shall have the right there to collect duty and likin on any opium, and similarly dues and duties on general cargo shipped on any native vessel to or from China. The Customs ought also to have the right to one or more special jetties in proximity to. junk anchorages at which cargo may be examined and verified.

(III.) The Chinese Customs cruisers and launches may continue to exercise their functions within the waters of the leased territory,

(IV.) No opium, raw or boiled, shall be landed or stored, taken delivery of or shipped in Hong Kong, British Kowloon, or any of the leased territory without a permit to be issued by a Colonial authority. Opium moved without permit or found anywhere or in any quantity in contravention of Colonial Ordinance shall be confiscated.

(V.) The opium farm-ie, an official establishment with an exclusive right to retail only boiled) opium-shall be maintained, and the Ordinances, Nos. 22 of 1887, and 21 of 1891, concerning opium movement, &c., shall be confirmed and amended to meet new circumstances, and to make good those points on which they are insufficient.

The boiling establishments of the farm, its retailing shops, and its books and accounts, shall be open at any time to the inspection of an officer of the Chinese Customs specially deputed for that purpose.

(VI) All Ordinances regarding the possession, movement, preparation or sale of opium in the Colony and its waters, afloat and ashore, shall be rigidly enforced by the Colonial executive, and its officers rewarded from proceeds of seizures with a view to encouraging zeal,

All proceeds of sale of confiscated goods shall be divided equally between the Chinese and Colonial Governments.

(VII.) No arms, munitions of war or contraband goods may be shipped on any vessel proceeding to a Chinese port, in Hong Kong or its waters, without a permit issued or countersigned by the Chinese Customs.