TNAG-1102-FCO40-1352-Smuggling-between-Hong-Kong-and-China-or-Taiwan-1981 — Page 30

GR 300

CONFIDENTIAL

FM HONG KONG 230844Z JAN 81

TO PRIORITY F C O

TELEGRAM NUMBER 60 OF 23 JANUARY

CONFIDENTIAL

TOP

HIR⋅ 38014

RECEIVED IN RESTRY NO. 51

مسل

EX

- 3 FEB 1981

OFFICER

REGISTRY Action Taken

PA

$3.2

Pan 3/2

INFO PRIORITY PEKING, HONG KONG GOVERNMENT OFFICE LONDON

SMUGGLING INTO CHINA FROM HONG KONG

Jee

OVER THE LAST FEW MONTHS THE VOLUME OF SMUGGLING INTO CHINA FROM HONG KONG, PARTICULARLY BY SEA, HAS INCREASED VERY SHARPLY. THE CONTRABAND CONSISTS MAINLY OF ELECTRICAL GOODS (ESPECIALLY TELEVISION SETS AND TEXTILES) WHICH ARE EXCHANGED FOR SILVER COINS AND MEDICINAL HERBS. THE PROFITS TO THE SMUGGLERS ARE REPORTED TO

BE AS HIGH AS 80% OF THE VALUE OF THE GOODS. THE CHINESE HAVE TRIED TO STOP THE TRAFFIC (ON OCCASIONS BY USE OF FIREARMS) BUT WITH ONLY PARTIAL SUCCESS. BESIDES GIVING PROMINENT COVERAGE TO THE PROBLEM IN THE PRESS IN CHINA, THEY HAVE MADE KNOWN THEIR CONCERN

TO US LOCALLY.

2. IT IS IN OUR OWN INTERESTS TO DISCOURAGE THIS TRAFFIC. NOT ONLY DOES IT CONSTITUTE AN IRRITANT TO GOOD RELATIONS WITH CHINA BUT IT ALSO CREATES AN ATMOSPHERE OF LAWLESSNESS ASSOCIATED WITH OTHER TYPES OF CRIME, NOT LEAST TRAFFICKING IN ILLEGAL IMMIGRANTS.

3. SMUGGLING INTO CHINA IS NOT IN ITSELF AN OFFENCE UNDER HONG KONG LAW. BUT, AS AT PRESENT CONDUCTED, IT IS BREACHING A NUMBER OF ORDINANCES, INCLUDING REQUIREMENTS TO MANIFEST CARGO, TO OBTAIN EXPORT LICENCES FOR CERTAIN GOODS AND TO USE VESSELS ONLY FOR THE PURPOSE (IN THIS CASE PRIMARILY FISHING) SPECIFIED IN THE VESSEL'S LICENCE.

4. WE ARE NOW PROPOSING TO ENFORCE THESE LAWS BY PROSECUTING

OFFENDERS AND WHERE APPROPRIATE APPLYING TO THE COURTS FOR

FORFEITURE OF GOODS AND VESSELS. WE SHALL ALSO CONSIDER WITHDRAWAL

OR SUSPENSION OF VESSEL LICENCES IN FLAGRANT CASES. ACTION WILL BE

TAKEN AGAINST BOTH HONG KONG AND CHINESE OFFENDERS. WE THINK THERE

IS A GOOD CHANCE THAT THIS WILL DO MUCH TO HALT THE TRAFFIC. IF IT

FAILS WE SHALL CONSIDER OTHER MEASURES.

5. THE NCNA IS BEING INFORMED OF OUR INTENTIONS AND THE STRICTER ENFORCEMENT OF THE LAW WILL ALSO BE MADE KNOWN GENERALLY BEFORE IT BEGINS. DISCUSSIONS WITH THE CHINESE AUTHORITIES MAY BE HELD AT

A LATER DATE IN THE LIGHT OF DEVELOPMENTS.

MACLEHOSE

MINIMAL HKGD FED

[THIS TELEGRAM WAS NOT ADVANCED]

COPIES TO:

HONG KONG GOVT OFFICE LONDON

CONFIDENTIAL

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