TNAG-1102-FCO40-1352-Smuggling-between-Hong-Kong-and-China-or-Taiwan-1981 — Page 14

GF 323

CONFIDENTIAL **

PAPER FOR THE GOVERNOR'S SECURITY COMMITTEE

No.19/81

Suppression of Smuggling Between Hong Kong and China

•

Introduction

At the GSC meeting on 17 July 1981, H.E. directed that a paper on smuggling between Hong Kong and China should be submitted at the next meeting.

2.

In January 1981 it had been decided that the Government Departments concerned, principally the Customs and Marine Police should take all possible action within existing legislation to harass those engaged in this traffic. The action envisaged was in respect of failure to manifest cargoes, failure to obtain necessary export and import licences and the use of fishing vessels for pur- poses other than fishing.

Government Action

3. Before January, smuggling between Hong Kong and China was flourishing, with no less than 100 Hong Kong fishing junks engaged in the trade. Each junk would carry up to one or two million dollars worth of consumer goods (electrical goods, textiles, watches etc) for exchange for silver coins or Chinese herbs with Chinese fishermen on remote islands near Hainan and the southern coast of China. The profit was believed to be as high as 100-150 per cent, dependent upon world price of silver.

4. Following the decision to take active counter measures, fishing junks carrying cargoes to or from China were intercepted by the Marine Police and handed over to the Customs and Excise Service for investigation. Offenders were dealt with under the Import and Export Ordinance for non-compliance with ships' manifest and licen- sing requirements. Masters of Hong Kong registered fishing vessels were additionally charged by the Marine Department with breaching licensing conditions under the Shipping and Port Control Ordinance. Gold, silver coins or ornaments in commercial quantities intercepted on land and subsequently proved to have been imported without cargo manifests were also seized and offenders prosecuted. As the Annex shows, courts are imposing heavier sentences: whereas previously fines were imposed, offenders are currently being sentenced to between 4 and 9 months' imprisonment.

5. Wide publicity was given about these measures, the successful interceptions and the heavier punishments. Marine Department issued notices warning owners, operators and masters of the offences and the penalties. The possible forfeiture of goods and the confiscation of vessels were also emphasised.

/ Liaison

CONFIDENTIAL #2

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