No.
2.
Copy to Sub-Legation.
H.B.M. Consulate,
Amoy,
4th February, 1933.
Sir,
hopen 0
With reference to your despatch No. 31 (5/32V/
1932) of the 24th December last, on the subject of
smuggling from Hong Kong into China, I have the honour
to report that I have investigated the question locally
as well as I can.
2. It is, in the first place, obvious that the
chief reason for the recent increase of smuggling into
this district is the raising of the Customs duties,
a step which cannot fail to encourage smuggling and
to render it lucrative.
There is, of course, the risk
of detection, but so profitable is the business that
three successful smuggling ventures out of four are
sufficient to give a handsome profit.
3.
Smuggling appears to be conducted not nearly
so much from Hong Kong direct as from Formosa, which
affords a most convenient entrepôt. For instance,
| sugar is sent in large quantities from the Netherlands
East Indies both to Formosa direct and Hong Kong.
At Hong Kong it is transshipped into Japanese vessels,
which carry it to Formosa.
From Formosa sugar,
however it may have arrived, is sent across the Channel
?opparité
to convenient places on the coast of Formosa, which, from
His Britannic Majesty's Minister,
etc., etc., etc.,
British Legation,
Peking.
its....
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