CO129-401 - Governor Sir May - 1913 [5-6] — Page 105

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years, or more, fines to the amount of over seven thousand pesos have been levied by the Philippine Customs on British shipping entering at Manila, Iloilo and Cebu, but chiefly at Manila. These figures have been arrived at by returns furnished by the Collector of Customs at Manila.

The fines in question of course involve a severe business loss to the shipping companies concerned as point- -ed out by Messrs. Smith, Bell and Co. (See Enclosure 3) and, in view of the dissatisfaction expressed by the Acting Collector of Customs, I felt it advisable to enquire of the Gove mor of Hongkong whether something could not be done to relieve the situation in the interests of British shipping.

It appears that where fines have been levied by the Customs at Manila for the (acrrying of unmanifested cargo in the form of opium that such opium has generally been secreted on board at Hongkong by agents or employes of Chinese opium syndicates which are alleged to be operating in Vanila and that, on arrival of the vessel, after search has been made by the Customs and Opium is discovered on board for which there is no known owner, the ship has often been fined for having unmanifested carga on board.

I note that the Acting Collector of Customs remarks in Enclosure No. 3 that fines will be imposed on vessels arriving from Hongkong on which opium is found unless it is shown

that adequate steps were taken to prevent its being placed aboard while in the harbour at Hongkong. This of course is very difficult to prevent entirely and in this connection you will observe in

Paragraph 6 of the Governor's letter the steps which are taken

by the Hongkong Authorities to prevent the illegal exportation of opium which seem to be of a very thorough nature.

Messrs. Smith, Bell and Co. suggest in their letter as a remedy (See Enclosures 2 and 3) for the suppression of

opium smuggling that severer penalties should be imposed and this ✯

is a suggestion in which I heartily concur.

I note with gratification that this principle

has been recognised in the "Opium Amendment Ordinance 1913 issued