CO129-517-1 Administration and function of Chinese Maritime customs- prevention of smuggling across Chinese frontiers 7-2-1929 - 15-11-1929 — Page 141

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of conciliation.

•

Government, moreover, have since initiated a wiser policy

Furthermore, the completion of the Canton-

Kowloon Railway in 1911 resulted in the establishment of a

Chinese Customs' Examination and Duty-collecting Office at

the Kowloon terminus of the Railway. The principle, there-

fore, of the Chinese Customs functioning on British soil has

thus been definitely established what China now desires is

merely an extension of that principle! I understand that

the British Government have extended unprecedented facilities

to the United States Government in connection with the

enforcement of the Prohibition laws, and I trust, therefore,

that the Colonial Office will view with a sympathetic eye

China's efforts to protect her Revere from serious loss

owing to the organised smuggling which is of daily occurrence

between Hongkong (practically a free port) and China. I

further append a copy of certain recommendations which I

propose to lay before the Hongkong Authorities, etc., for

their consideration. And I ought to add that unless the

Hongkong Government concedes reasonable facilities and

permits us to shorten our line of defence by functioning

in British waters, China will unquestionably be put to

enormous expense in attempting to protect her fiscal inter-

ests in the new conditions now obtaining in South China.

I believe, furthermore, that an arrangement on the general

lines now proposed by me would further promote the friendly

relations happily now existing between China and Hongkong,

and this, in turn, would benefit British trade and advance

British interests generally.

I