CO129-517-2 Correspondence on proposed Chinese and Hong Kong agreements over Customs 13-11-1929 - 28-12-1929 — Page 92

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The Inspector General received instructions from

the Ministry of Finance to proceed to Hongkong; investigate

smuggling conditions in the neighbourhood; endeavour to

effect an arrangement with the Government of Hongkong in

order to enable China to better protect her Revenue and

check smuggling; and report.

The Inspector General now reports as follows:-

He left for Hongkong on the 13th July and returned

to Shanghai on the 2nd August. On arrival in Hongkong he

at once called on the Governor and carefully outlined the

Customs' position to him and invited his assistance and co-

operation to enable China to protect her Revenue and stop, or at least check, smuggling. The Governor was reasonable and sympathetic, and asked the Inspector General what he

proposed? The Inspector General replied that when the

Kowloon territory was extended in 1899 to its present large

dimensions Sir Robert Hart, on behalf of China, immediately

informed the British Government that the extension of the

Kowloon and sea Frontiers added enormously to China's

difficulties in the matter of protecting her Revenue, and,

this being so, he recommended that the Hongkong Government

should permit the Chinese Maritime Customs to retain their

three sea-stations close to the Island of Hongkong; that

the Customs should be empowered to control junke loading in

Hongkong Harbour for China; that the Customs should be

empowered to examine cargo destined for China carried by

such junks, and collect Duty thereon in Hongkong; that

non- manifested cargo should be seized and confiscated; and

that....