CO129-542-12 Smuggling from Hong Kong into China 21-1-1933 - 21-8-1933 — Page 4

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.X. The F 3. has asked J. Swire & Sons for a full

statement of

fines levied in

legislation the Hong Zong Government has already gone out of its way to meet the companies. It must

be rememoered that the enforcement of revenue

laws of foreign countries is not generally a

matter which concerns the authorities and courts

of any place (see 17 Halsbury, paragraph 846). On John Swire & Sons' own admission (page 2 of (1) on 92702/32) the China Navigation Company Ltd had been fined between Hong long $7000 and II.K.$8000 at Canton alone during the first 8 or 9 months of

so it is clear that they could well afford

1932,

X.

a considerable outlay on preventive measures at

1932 (see secondong Kong, provided these were effective, and still

enclosure in(1)),

which when re- ceived will give something definite for us to go on.

be in pocket on the arrangement.

On the other hand, it seems to me that,

having passed legislation to prevent the export

of unmanifested cargo, it is logically rather difficult for the Hong Kong Govt. to refuse to take any steps for its enforcement, unless breaches of the law are actually brought to its notice by the

shipping companies.

It seems to me that a reasonable compromise

might well be reached by the Hong Kong Go vt.under- taking to search for unmanifested cargo at the

expense of the shipping companies.

There may, of

course, be difficulties about such an arrangement

which are not apparent on the information at present before us, but the suggested compromise is one which I think might well be put to the Hong Kong Government, if there is difficulty about reaching a modus operandi as a result of the

discussions to which reference is made in para.6 of

From the companies' point of view the

(2).

suggested