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The suggestions that are put forward below have been arrived at after careful consideration of the views of all the Commissioners concerned as submitted to the Inspector General, and after discussion of the many points of view with the Superintendents of Canton and the Coast Ports and with the delegates on board the Pingching. They do not pretend to cover the But they ground thoroughly or in detail. This must remain a matter for future working out. may serve as a first step towards something of a definite policy.
There can be no doubt, I think, that to all questions regarding smuggling along the coast or rivers of China, the reply that must first suggest itself will be: What is the Native Customs doing? and what the police? These are presumably present at the places where this smuggling
said to occur. If smuggling exists in any great degree they are either inadequate or incompetent or they are privy to it. This holds good whether of Hainan and the Luichow Peninsula, Shekki and the Canton Delta, or the east coast. Thus it seems that our first stop must be logically in the direction of the improvement or strengthening of the Native Customs, either by (a) taking over or (b) by improved liaison and financial assistance to them where such is necessary. To attempt to stop leakages by means of armed patrols only as a first measure an expensive form of treatment at the best-will be so much expenditure wasted as the Native Customs now stands; and while the provision of armed cruisers may do something to assist a shore that is of the same mind, it will be only of the smallest degree of assistance to the country if there be not also a Customs line bordering the coast that can be depended on
at least to some extent.
It was the opinion of the delegates, and I myself believe, that our attention should be turned to improving relations through the Superintendents with the coast Native Customs establishments rather than by attempting at this juncture to take over same entirely. It is unnecessary to labour this point. Undoubtedly to take over would be the better course were it possible without opposition and ill-feeling. But I believe that it will serve our ends equally well and avoid opposition to follow course (b): namely, to improve the liaison with these stations through the Superintendents and with their goodwill and to extend to them the financial assistance that it is clear is essential if our programme is to be carried through. The following suggestions will, I believe, be supported generally in the reports to the Government of the delegates for Kwangtung and Fukien, copies of which will be sent in due course to the Inspectorate.
Measures suggested by Coast Inspection Tour.
1. The Government should make clear its wishes regarding the junk traffic with foreign-e.g., Formosan-ports. Is this traffic illegal or not? For at present it continues to be carried on. A Government notification is called for defining clearly what the law is. If not illegal, what tariff is to be followed? At present there are two or more in force.
2.-Foreign-flag Motor Vessels.-Motor vessels should be treated consistently as steamers. No motor vessels should enter a Chinese port without full national papers and Manifest, etc., tonnage dues being leviable. A notification should be
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issued to all sea Customs that any motor vessel entering a non-open port must immediately report to the Customs there giving reasons for entering. In the absence of a Customs such report to be made to the local police. No trading and landing or shipping of cargo permitted. The vessel to stay no longer than consistent with need for shelter or repairs to machinery. The date of arrival and departure and reason for entry to be reported to the Superintendent immediately.
3. The Maritime Customs should station a representative at the port of Tungshan () between Amoy and Swatow, for the purpose of observing shipping conditions and reporting to both Amoy and Swatow.
4. All motor vessels found sailing or at anchor within 12 miles of the Chinese coast or islands to be liable to stopping and search by revenue vessels. In the event of same being found to have no national papers and Manifest showing clearly port of departure and whither bound, cargo, etc., vessel to be liable to be taken into nearest treaty port for investigation.
5--Trading junks to be compelled to take out national papers, etc., on the same lines.
General Measures for Consideration.
6. The coast of China from the Yalu River to the Tonkin frontier to be divided into districts or areas under the definite control of Superintendents of Customs. The respective areas to be visited by Inspectors charged with reporting to the Superintendent on the preventive measures in force in that area, and on the opportunities left open for clandestine traffic. Superintendent to consult with Commissioner of Maritime Customs most concerned in that district for adjustment of conditions. Additionally, the districts to be visited, as opportunity may permit and with as little warning as possible, by Maritime Customs revenue cruiser having on board representatives of both Superintendent and of Maritime Customs who will report to their departments.
7. The amount of financial assistance, if any, necessary to maintain each district in a reasonable state of efficient prevention of regular or wholesale smuggling to be estimated and decided upon.
3. Regular shipping statistics and information to be regularly exchanged between all Native Customs establishments and the Maritime Customs port open to trade in that district. Lists of shipping, inwards and outwards, to be regularly kept.
9.-Pending the outstanding settlement of the Hongkong and Customs Agree- ment, wireless stations to be established at all Maritime Customs stations round Hongkong and Macao and at certain islands and light-stations to be decided upon. Thus a screen of wireless stations established to cover the approaches to the Canton Delta and the non-open places on the coast.
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