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ports, Canton, Swatow and Amoy, principally affected by the
contraband traffic from Hongkong into China. I have the honour
to enclose herewith copies of the despatches since received
from His Majesty's Consular officers concerned. These reports
confirm that smuggling is carried on on a large scale along
the coasts of Kwangtung, and it appears that there is a
regular system of selling goods "ex godown Hongkong" for
delivery in China. The British shipping companies, are,
however, not concerned with the bulk of this contraband traffic,
which is mainly carried on in launches and junks, so
that the primary need is for more effective preventive
measures along the coast of China. The physical features
of the Canton-Swatow-Amoy coast, which is deeply indented and
studded with rocky islets, afford no doubt special facilities
for the smuggling operations of small native craft. It is
also to be noted that smuggling is similarly carried on from
Macao and Formosa, so that even complete suppression in
Hongkong would not solve the problem from the Chinese point of
view.
7. I feel that I am hardly in a position to offer any
further useful comment or observations on this question which
on our side primarily concerns the Government of Hongkong.
The latter are in a difficult position and have taken such
measures as they deem appropriate. These measures are, I
understand, proving effective, insofar as they have facili-
tated the steps taken by the shipping companies to increase
their precautions against smuggling by their Chinese crews.
No real remedy, however, is likely to be found as long as
the Cantonese authorities refuse to cooperate in the
suppression of smuggling and more particularly continue to
block the conclusion of the Hongkong-China Customs Agreement.
I have, etc.
(Sgd.) Miles W. Lampson.
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