CO129-425 - Governor Sir May - 1915 [10-12] — Page 787

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has been threatened. Besides the withdrawal of these privileges the Companies are exposed to all the penalties in force in the port of Canton, if smuggled goods are found on our vessels. As you may be aware, these penalties are drastic involving prohibition to trade in Chinese ports, heavy fines and even confiscation of vessels.

As the law of the Colony stands at present, if smuggled salt is found on board our vessels at Hongkong and the

offence traced the Companies canot prosecute the offenders for the reason that there is no regulation for the prevention of such smuggling or law for punishment of the offence. We are aware that the bulk of the salt smiled is carried out by Chinese passengers, Rembers of organised bands of smugglers, assisted by boat people and members of our steamers' crews, who place the article onboard from native boats as the stemmers leave the Companies' wharf at Hongkong. The attention of the police has been repeatedly called to the matter, but no action has been taken by them nor has any assistance ever been received from them to stop a traffic that is working against our interests, presumably because they are not empowered to take action.

Weyshall be glad if you will assist us by addressing the Government with a view of causing such amendments to be made in the Hongkong law as may be thought necessary and effectual and granting us that protection in our business which we submit we are justified in asking for.

We are etc.,

(Sd.) W. E. Clarke,

Secretary,H.K., Canton & Macao

Stmbt.Co.,Ltd.

(Sd.) Butterfield & Swire,

Agents, China Navigation Co. Ltd.

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