CO129-521-13 Chinese Customs- proposed agreement with Hong Kong 27-8-1930 - 16-10-1930 — Page 234

233

SECTION 2 (c)

24.

The present nego- tiations for the conclusion of a Hongkong Customs Agreement.

(p.394 in D 2 1929)

Smuggling round Amoy.

21.

Sir

In June 1929, the increase of smuggling

consequent upon the increased tariff, particu-

larly as regards kerosene oil, began to attract

the close attention of the Chinese Government,

and the Minister of Finance, Mr. T.V. Soong,

on a visit to Hongkong and Canton, discussed the

matter with the Governor and Consul-General.

C. Clementi was sympathetic, and willing to co-

operate within limits, but said that Hongkong

would not deviate from the policy of maintaining

itself a free port. He admitted however that

smuggling was extensive, and bad for the rela- tions between Hongkong and Canton, and agreed

with Mr. Soong that control of the junk traffic

was what was wanted. Mr. Soong told Mr. Moss

that the Chinese Customs would have to work out

a formula of co-operation between the Customs

and the colonial authorities. Mr. Moss was care-

ful to say that any co-operation on his part

would have to follow Hongkong'a lead.

22. H.M. Consul at Amoy about this time reported

the difficulties British firms were experiencing

in placing foreign goods on the market, owing to

diversion of trade from normal channels through

smuggling. He said the centre of this smuggling industry was at Hongkong, where syndicates had come into existence for the purpose of evading the

Customs. Crude oil was loaded into motor junks at Hongkong, and the smuggling was confined to goods on which a high duty was payable. Consul thought that the only means of checking the smuggling was by a barrage of pickets along the coast, similer to those of the defunct Surtax

/Bureau.

H.M.