Sessional_Paper_1884 — Page 87

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Commissioners should observe that during the last 5 years, when a complaint was made to Government by Chinese, that a junk had been overhauled within the waters of the Colony and cargo carried off by a Revenue Cruiser or so-called Revenue Cruiser, the first step taken was to inquire whether a breach of Harbour Regulations had taken place. That was done by the orders of the Governor. If any offence of the kind were proved, penalties of fines and forfeitures which were created for the suppression of piracy were enforced for breach of Harbour Regulations, although the legislature never intended that such punishments should be inflicted on persons engaged in the pursuit of an object not contrary to the law of the Colony. It is a contradiction in terms to speak of smuggling in a free port, but if it is thought expedient to continue the practice recently adopted, a law should be passed declaring smuggling from Hongkong into China illegal, and provisions should be made for the forfeiture of all vessels engaged or suspected to be engaged in the trade, with their cargoes; and non-compliance with Harbour Regulations should be deemed to be conclusive evidence on which to base suspicion. But the Commissioners consider that it is very questionable whether powers which were expressly given to the Executive for the suppression of piracy, and which were only asked for, for that purpose, should be used to punish persons for doing acts which are not illegal in Hongkong, and need hardly remark that, whether it was intended or not, no more effectual means could have been devised to prevent violation of the waters of the Colony from being brought to the notice of this Government than to punish the complainants and to discourage the Police from reporting such occur- rences, unless complaints were first made. (See Inspector MACKIE'S evidence, Appendix, pages 28 to 31, and 93 to 95). Nevertheless the returns printed at pages 74 & 75 of the Appendix shew a very considerable number of seizures. Before passing from this part of the Report, the Commissioners would observe that it is shewn by the records of the Colonial Secretary's Office that the Chinese Customs at the Liümún Pass claimed to collect dues on goods carried from Victoria to Saiwán, ports in the Colony, a pretension on the part of the Chinese Government which it required considerable pressure to remove.

The Commissioners submit, with reference to the whole question of smuggling from this Colony into China and the so-called Blockade, that according to International Law it is no part of the duty of the Government of Hongkong to assist the Chinese Government in the collection of its Revenue. Yet, considering the position of Hongkong in relation to the Mainland of China, the Commissioners feel that the Colonial Government is called upon by considerations of policy to prevent in every reasonable way the freedom of this port from being abused by being made the means of defrauding the authorities of the neighbouring Empire of their legitimate dues, provided that the Chinese Government on its part will conform to the provisions of Treaties in respect of Tariff stipulations, and will moreover enter into effective guarantees that the trade of Hongkong shall not be subjected to irregular, indefinite or an exceptional taxation, and that vessels and goods shall not be forfeited, or persons trading to or from Hongkong be punished for smuggling unless by some competent and open tribunal in which com- plete confidence may be reposed by the Hongkong Government.

The Commissioners do not regard it as within the scope of their authority to discuss the merits of the various comprehensive proposals which have from time to time been put forward to reconcile the rights and interests of the respective Govern-