CAB11-57-2 — Page 94

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boundary, running along the crest of the hills, is easy of defence, and would help to check smuggling. It renders unnecessary the separation of villages hitherto united, removes all danger of disputes about water rights, and obviates any interference with the present system of local self-government, on the support of which the success of British administration in the new territory must to a great extent depend.

It should also be noted that, according to the map attached to the Convention, 113° 52′ E. longitude is the western boundary of the new territory. This places the south-west part of the island of Lantao outside the area to be leased. To obviate such an untenable position, 113° 50' E. longitude should be taken as the limit of the western boundary.

PREVENTION Of Smuggling.

The question of smuggling from Hong Kong is one which has given more trouble than almost any other ever since the foundation of the colony. Steps have been taken again and again to prevent smuggling, and to aid China in the collection of its revenue, and all the return the Government of Hong Kong has received from the Chinese for these attempts to assist them has been the establishment of Customs barriers at the entrances to the harbour of Hong Kong (see Map XI.), and a watchful patrol of the waters adjacent to the colony by cruisers and launches of the Chinese Imperial Maritime Customs, ever ready to overhaul the native shipping going to and from Hong Kong. Those who treat the question of smuggling from the Chinese point of view seem to forget what has been done in the past by Hong Kong on behalf of China. They are fond of describing the colony as a centre of smuggling, and drawing very exaggerated pictures of the smuggling operations carried on from there. The accounts of such persons should be largely discounted.

The whole difficulty lies in the geographical position of the Colony of Hong Kong, which is so situated that smuggling into China may be checked but can never be alto- gether prevented. It is obvious that the extension of the colony will not decrease the facilities for smuggling, especially if a mere stream instead of a well-defined range of hills is selected as a boundary.

Opium has always been the chief article smuggled. To prevent the smuggling of it special legislation has been introduced by the Government of Hong Kong, which has resulted in a considerable decrease of its revenue, whilst China still maintains around Hong Kong a fleet of cruisers and launches.

If it is considered desirable, in view of the pledge given by Great Britain to China to prevent, so far as possible, smuggling, to still further control the export of opium from Hong Kong, I am of opinion that this can be best effected by a bonding system.

All opium, on its arrival at Hong Kong from India, should be bonded, and no opium should be allowed to be removed from bond except under proper guarantees as to its destination, or shipped, without the harbour master being furnished with a copy of the bill of lading.

The Customs of China should be supplied with regular returns of all shipments. The Opium Farmer of Hong Kong should be made to account clearly for every chest of raw opium supplied to him, and should not be allowed to handle more raw opium than is necessary to meet the opium-smoking requirements of Hong Kong and of the new territory, and the demands of the prepared opium export trade to Australia, America, and elsewhere.

These precautionary measures are sure to decrease the revenue of Hong Kong. If they are adopted, the Government of China should not hesitate either to lease the whole of the San On district or to adopt that boundary line which is the best in the interests of all parties concerned.

KOWLOON CITY.

The city of Kowloon is called in Chinese Kau Lung Shing. The term Shing is the ordinary one used for a city by the Chinese. It originally seems to have signified a rampart surrounding a space; but it is now always applied to a city surrounded by a wall or rampart, as all Chinese cities are. The Convention refers to the retention of jurisdiction" within the city of Kowloon," thus clearly showing that the walled city is

meant.

Kowloon is situated about a quarter of a mile from the sea shore. It is enclosed by a stone wall built in 1847, forming as nearly as possible a parallelogram, measuring 700 feet by 400 feet, and enclosing an area of 61⁄2 acres.

an area of 6 acres. The wall is built of granite ashlar facing, is 15 feet in width at the top, and averages in height 13 feet. The wall has six watch towers, at present occupied as family dwellings, and two gateways, with doors made of wood and lined with iron sheeting. The parapet wall is built of granite, and

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