CO129-542-12 Smuggling from Hong Kong into China 21-1-1933 - 21-8-1933 — Page 33

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themselves interested in the contraband traffic (Dr. T. V.

Soong recently informed me with a smile that the brother of

General Chen-tsai-tong was the head of the smuggling

organisation!); and that, so far as British shipping is concerned,

the position is further complicated by the long standing

practice of British ship-owners permitting the Chinese

members of their crews to carry "pidgin" cargo and the lack

of effective control exercised over these Chinese crews. Sir

William Peel also points out that smuggling is not normally

an offence in the country from which the smuggling emanates,

and that it is for the country into which the goods are smuggled

to defend its boundaries.

The Hongkong Government have never-

theless taken action to the extent of enacting legislation

under which the import into and the export from the colony of

unmanifested cargo, or the placing of any cargo on board any

ship in the colony without the consent of the owners or masters,

are prohibited. The Colonial Authorities look, however, to

the Shipping Companies to take the initial step of detecting

unmanifested cargo, after which they are prepared to take

the necessary action.

4. On my way through Hongkong en route back to China in

the middle of January I discussed this question of smuggling

with His Excellency the Governor, when Sir William Peel

explained the nature of his difficulties and the action he had

taken in the matter. It was clear from our discussions that

by far the best solution of the problem lay in the conclusion

of the draft Customs Agreement, which had been blocked by

opposition from the Cantonese. I undertook to raise the

question during my impending visit to Canton, and, as reported

in my despatch No.183 of February 14th, I broached the

subject with the Chairman of the Provincial Government and

Marshal Chen Chi-tang (Chen Chai-tong) at an interview on

January