Sessional_Paper_1907 — Page 303

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more than meet the Government Officials half way, and in many cases readily offer presents before they are demanded.

390. That it is recognised that these payments are illegal is clear from the tatements made before the Commission as to the manner of payment. How every precaution is taken that no witnesses are present, and when the suns have been entered into the account books, they appear as "coolie hire," "sampan hire," "sub- stitute labour" and so forth; in only one case did the word "bribe" appear, while if the payments were entered as to an Inspector, in most cases a fictitious name was used, or merely the number of the District to which the Inspector belonged was given.

391. The fact that in many cases no books have been produced, while others have been found to have been mutilated or altered, satisfies us of the correctness of the information given privately, while it has already been clearly proved that in- stances have occurred where an individual Inspector has attempted to prevent wit- nesses from giving evidence before the Commission, and other cases have been before us, which however we have been unable to confirm, as the native witnesses for fear of trouble have left the Colony.

392. The excuses made by many of the witnesses as to why they had lent themselves to a state of affairs of which they disapprove, and which they know to be wrong, may be briefly summed up as follows:-

If a contract be remunerative, money is paid to the Inspectors and other Page 484. Subordinate Officials not particularly for any direct service rendered, but in the Question3642.. hope of establishing friendly relations and ensuring good results in the future.

The Inspectors inform these contractors that their work is not satisfactory and cannot be passed, then follow it up with a request for a loan, which it is clearly understood does not involve repayment.

One contractor states "All Inspectors want presents," and another witness Page 506. stated all contractors give presents to the Inspectors.

Question 3852. Page 818.

6543/1 Page 724.

If such presents are not made, delay takes place in issuing permits or the Questions work is reported as not fit to pass and has to be redone. Another witness stated they were under the rule of the Inspector" and they were forced to make presents Question in kind or money.

5726.

Page 732. Questions

393. A large number of Chinese witnesses have given similar evidence, all 5805/9. pointing to the fact that contractors, shop keepers, restaurant keepers, &c., pay bribes to the Inspectors in order to purchase their goodwill and to avoid possible trouble, or to get work passed,

394. It appears that the larger contractors and architects have nothing to do with the bribing. The usual custom is to sub-let, and the sub-contractor is supposed to do all that is necessary in this direction, in order that the work may be passed.

395. There appears to be little doubt that certain .contractors, such as Foo Page 774- SIK, SAM IU, TSANG YING and a few others are the favoured contractors. These Question men alone can accept and carry out certain forms of contracting, as otherwise work Page 775. will not be passed by the Inspectors.

Question 6190. Page 776.

6239.

396. Evidence bas been given where a Chinese Architect and others Question have been informed by Government Officials that they had better employ certain contractors, while if they attempt to get work done by their own men, the work is rejected by the Inspector. The favoured contractors for building, laying of drains, lime washing, &c., are thus able to make excessive charges, and the public generally have to submit to these exactions.

397. With large contracts for European firms, the question does not arise.. The contractor is engaged, and as a matter of course in making his estimate allows See Appendix sufficient to cover all such irregular payments as may have to be made by the sub- No. 8. contractor while the contract is being carried out. Even wealthy Chinese firms Page 874 such as the YUEN FAT HONG have to submit to such exactions, as they say there Question is no help for it. Shop keepers, restaurant owners, and others say they pay these squeezes because it is cheaper than being continually harassed by Sanitary Officials.

7091.