CO129-513-5 Coastal and river trade- prevention of smuggling and illicit trading 15-10-1928 - 14-12-1929 — Page 41

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were taking to deal with it. I have now received from

Mr. Garstin copies of a letter addressed by him to the

companies and of their replies, from which I think it

is clear that no new or particularly energetic measures are being taken to prevent smuggling. (Please see Shanghai despatch No. 78 of March 13th, copy of which is enclosed herein).

3. Meanwhile the case of the "Tuckwo" (please see my despatch under reference) shows that the carriage

of opium on British ships continues in some cases quite

openly, a fact which cannot but be prejudicial to

British interests. I realise the great difficulties with which the companies are faced in coping with the

smuggling problem but in view of the probability of an

attack in the near future on the position of British

shipping in the coastal trade of China, I cannot help

feeling that in their own interests they underrate the importance of devising some way of meeting it.

4. The attitude which they seem at present

inclined to adopt, namely that since the Chinese

authorities take no serious steps to suppress the opium traffic the onus cannot reasonably be placed upon them- selves, while a natural one in the circumetances, surely misses the point, which is that as long as smuggling is known to go on in British ships it is very difficult for us to defend their privileged position and especially

the right, which we have hitherto maintained in principle if not always in practice, of immunity from search except

by the Maritime Customs.

5. As stated in my despatch under reference, have hitherto been exceedingly reluctant to abandon

this.