CO129-501-8 General policy in China 30-11-1926 - 30-11-1926 — Page 39

SECRET (2).

ies to:-

Canton No. 302.

Peking No. 71.

RECEIVED 16SEP 1927 iCOL.OFFICE

30035-

GOVERNMENT HOUSE,

13

43

HONGKONG. 12th August, 1927.

Sir,

2012

Com 3.0.

From my secret despatch of the 9th August

you will observe that, if the new taxation schemes of the

Nanking Government materialize, there is some danger of a revival of the so-called fiscal "blockade" of Hong Kong, which was the cause of continual irritation in this Colony

between the years 1868 and 1887. It may be useful, there-

fore, if I recall briefly the history of that episode and

suggest the precautionary measures which seem desirable.

2.

the mainland of China than the Isle of Wight to England. The eastern entrance to the harbour is only 600 yards wide,

and, until 1899, the whole northern shore of the harbour

was under Chinese jurisdiction. So it was a very easy matter for junks to slip from British into Chinese waters

and, as Hong Kong was a free port, it inevitably became the

centre of an active smuggling trade into China. Outside the

waters of Hong Kong, in the early days of its history, fiscal jurisdiction was exercised by the Canton Hoppo (Yueh Hai-kuan

Pu), or Administrator of the Canton Customs. This official

was a direct representative of the Emperor and entirely

outside the provincial hierarchy, taking rank with, but after,

The island of Hong Kong lies much closer to

THE RIGHT HONOURABLE

LIEUTENANT COLONEL L.C.M.S. AMERY, M.P.,

&c.,

&c.,

&c.

the