CO129-513-5 Coastal and river trade- prevention of smuggling and illicit trading 15-10-1928 - 14-12-1929 — Page 82

!

81

taxation there can be expected.

As regards carriage of "Pidgin" cargo, the various Consuls quoted in your despatch under reply justly point out that it is entirely in our interest to stop it and it is here pertinent to remark that under conditions existing our boats are being run between Ichang and Chungking at a financial loss and therefore we can only say that we spare no effort to

say stop the carriage of such earge but we think it should be pointed out that the shipment of "Pidgin" cargo was greatly facilitated by the action instituted by the Chinese Maritime Customs at lohang who, in order to avoid bringing themselves and/or their employees into open conflict with the organized bands of cargo runners, started a system of issuing Customs permits to applicskás without such applicants producing an "Order to ship" from the Shipping Company concerned thus transferring the onus of stepping illieit goods from the shoulders of the Customs to that of the personal of the ship. The question of how the Shipping Company was to keep any check over such shipments was simply ignored.

In response to a telegram which we sent to Ichang on the 6th instant asking whether this system still prevailed we received a reply that "ginge 1926 Customs izme Permits to ship without obtaining Shipping Company's endorsement."

In reply to the coneluding paragraph of your despatch we beg to say that we fully realize the fores of the contentions put forward by H.M.Minister and

desire/