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return for this it is proposed that Hongkong reasols should be allowed to participate in the privilege of the inland Vaters Ragulations. At first sight this seems a great concession, but on closer examination, it is seen that the concession is conditional upon the re-establishment of the Customs sea-
Stations alone to the Hongkong Harbour, and, this being 0, the Chinese Customs in Hongkong would be in a position to examine, control and collect Euty in respect of Imännd Waters vessels in Hongkong Just as effectively as the Canton Customs de in Canton? Go the Catanas revenue is thus fully protected;
It is well to regolleat, too, that if China expects concessions
ut i wia esae ghe 13 axnucted to concede concessionai
Hongkong gives China more than China gives hongkongi
The Inspector General also interviewed members of
the British "hamber of Commerce in Hongkong, and pointed out
At first many of to them all the features of the situation.
the objected to the propssal that the Chinese Customs should function on British soil, but the Inspector General overcame their objections anil, he thinks, succeeded in areating a sort of public opinion favourable to Chinese Customs' interestsi Land carefully investigated trade conditions at both places:
The Tnspector General visited canton and Hono/and
he sent his Jecretary to Mongoon to study conditions there: Canton and Eongoen are the two Treaty-perts nearest to Bong- and liao8o. The Inspector General finds that the smuggling
between Hongkong and China has now reached enormous ainan- sions, and is daily increasing. Kerosene oil, sto.... is being
the statistics amaggled into Chine in very large quantities
of Kerosene, etc., ef the Canton Qusto: Mouse show a serious decline, yet we know that the consumption is increasing. The foreign oil companies wish to stop t is most serious illicit trade in oil in their own interests, but unless H2ngkong co- operates they are powerless! Foreiṣn goods generally, are also being smuggled inte China in increasingly large quantitie
The
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