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6th. 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 Co-
lonial 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 Govern-
ments.
7th. 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.
8th. The Hong-Kong Government shall pass such
legislation as may be necessary to give effect to the above
provisions.
The above numbered paragraphs are put forward
merely to represent what I consider it proper should be done
at Hong-Kong to meet Chinese revenue requirements. I may how-
ever express the opinion that the system it provides for, and
more especially the recognised presence of a fully authorized
Chinese Customs establishment at Hong-Kong, gives promise of
enabling measures to be taken which will make the working of
the West River trade, especially at those places of call to
seawards of the first port (Shamshui), considerably easier
than at present; also, of securing arrangements which might
facilitate the trade anticipated to grow up under the new inland steam navigation rules. In hoth respects anything which
may
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