E 2
5. Again Tai Pak and Yee Pak on Lantau Island accounted for a considerable number of the illicit still seizures, but other islands, especially Tsing Yi, and the more inaccessible hillsides also contributed their quota. Arrests in such cases are the exception as a watch is kept for the approach of a Revenue party. The constant raids on Tai Pak and Yee Pak have had their effect in a general lowering of the previously high level of prosperity there; it is believed that the villagers at one time subsisted almost entirely on the proceeds of their illicit activities.
6. Seventy-two illicit stills were found in urban tenements. The increase in illicit distillation in urban areas is disturbing, as detection is dependent on information received. Hitherto, however, the rewards payable for such information seem to be adequate.
7. There was a considerable decrease in the amount of illicit liquor seized during the year. A good deal of the illicit traffic was in previous years centred on Cheung Chau, and the stationing of two Chinese Revenue Officers on that island in March has had a good effect. Other contributing causes have been the decreased number of ships entering the Colony from China and also the increase in the price of rice in that country which has tended to make distillation less profitable. It is understood also that the Chinese authorities with a view to conserving food supplies have restricted the use of rice for distillation.
II. TOBACCO.
8. The total consumption of tobacco of all kinds for all purposes showed an increase of 1,774,857 lbs., as compared with 1936. The corresponding increase in the amount of duty paid was $2,178,224.10. On the other hand, the amount of drawback paid in respect of tobacco manufactured locally and re-exported increased by $1,807,539.67 to $2,169,480.24, an increase of almost 500%.
9. These figures speak for themselves. There has been an enormous increase in the local manufacture of cigarettes for export, and the Colony has now captured much of this trade that was formerly centred at Shanghai. At least one large local cigarette factory has been working day and night for months, and heavy demands have been made on the staff of the department in the way of overtime.
10. The increase in the net revenue amounts to $365,272.23, attributable again to increased population and improved economic conditions.
11. The amount of clean tobacco leaf imported in 1937 again increased, being double the 1936 figure. It is clear that importers are finding it cheaper to have the leaf stripped in Macao before importation.
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5. Again Tai Pak and Yee Pak on Lantau Island accounted for a considerable number of the illicit still seizures, but other islands, especially Tsing Yee, and the more inaccessible hillsides also contributed their quota. Arrests in such cases
are the exception as a watch is kept for the approach of a Revenue party. The constant raids on Tai Pak and Yee Pak have had their effect in a general lowering of the previously high level of prosperity there; it is believed that the villagers at one time subsisted almost entirely on the proceeds of their illicit activities.
6. Seventy-two illicit stills were found in urban tenements. The increase in illicit distillation in urban areas is disturbing, as detection is dependent on information received. Hitherto, how- ever, the rewards payable for such information seem to be adequate.
7. There was a considerable decrease in the amount of illicit liquor seized during the year. A good deal of the illicit traffic was in previous years centred on Cheung Chau, and the stationing of two Chinese Revenue Officers on that island in March has had a good effect. Other contributing causes have been the decreased number of ships entering the Colony from China and also the increase in the price of rice in that country which has tended to make distillation less profitable. It is understood also that the Chinese authorities with a view to conserving food supplies have restricted the use of rice for dis- tillation.
II. TOBACCO.
8. The total consumption of tobacco of all kinds for all purposes showed an increase of 1,774,857 lbs., as compared with 1936. The corresponding increase in the amount of duty paid was $2,178,224.10. On the other hand the amount of drawback paid in respect of tobacco manufactured locally and re-exported increased by $1,807,539.67 to $2,169,480.24, an increase of almost 500%.
9. These figures speak for themselves. There has been an enormous increase in the local manufacture of cigarettes for export, and the Colony has now captured much of this trade that was formerly centred at Shanghai. At least one large local cigarette factory has been working day and night for months, and heavy demands have been made on the staff of the depart- ment in the way of overtime.
10. The increase in the net revenue amounts to $365,272.23, attributable again to increased population and improved economic conditions.
11. The amount of clean tobacco leaf imported in 1937 again increased, being double the 1936 figure. It is clear that importers are finding it cheaper to have the leaf stripped in Macao before importation.
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