CO129-542-12 Smuggling from Hong Kong into China 21-1-1933 - 21-8-1933 — Page 32

Copy.

(F 3187/294/10)

No.415 (17/6.A/1933)

Copy to:

Hongkong

Consuls.

BRITISH LEGATION,

PEKING.

29th March, 1933.

32

sir,

I have the honour to acknowledge receipt of

your despatch No.828 of October 12th, 1932 (F 7091/3152/10), enclosing, for my observations, copies of correspondence

exchanged with Messrs. John Swire & Sons, Limited, on the subject of smuggling at Hong Kong and its effect on British

shipping engaged in the coast trade of China.

2.

I have dealt in a separate report with the aspect of this question which concerns the fining of British ships (see my despatch No.395 of 27th March 1933), and I will therefore confine myself in this despatch to the general question of smuggling between Hongkong and South China ports.

3. The position so far as concerns the colony is clearly set forth in Hongkong despatches to the Colonial Office,

Confidential, of December 23rd, 1932, and February 1st, 1933.

In the former despatch Sir William Peel brings out the salient points of the problem, namely; that the existence of

a free port such as Hongkong within a short distance of the

coast of China affords in the peculiar circumstances of the

case unique opportunities for smuggling which has been

rendered so much more profitable of late by the increase in

the import tariff; that the provincial officials, having no interest in the local Customs revenues, are not only not concerned with the suppression of smuggling, but are often

themselves

The Right Honourable

Sir John Simon, G.C.S.I.,K.C.V.0.,

etc.,

etc.

etc., Foreign office.