FO371-23514 — Page 217

Page 217

Page 217

COPY.

ONFIDENTIA L.

1

RESUME OF SMUGGLING CONDITIONS IN TIENTSIN 1938.

56

During the year under review there was nothing of

special interest to be mentioned regarding prevention

of smuggling. The organised smuggling that was carried

on along the coast between Taku and Shanhaikuan, which

we battled against for years, ceased entirely. Although

smuggled goods continued to stream into Tientsin by rail

during the latter part of 1937, as mentioned in the

report for that year, the situation took a sudden turn

at the beginning of 1938. As a consequence of the

amalgamation of the Chitung regime and the Provisional

Government, the Chitung Inspection Office (冀東沿海輸出入貨物查

P), which collected duties on the goods illegally

landed along the coast of the East Hopeh, was abolished

in February. This, coupled with the taking over of the

control of the coast by the Customs in the same month (vide

Tientsin telegram No. 546 to I.G.) and the efforts made

by the Japanese authorities in Tientsin and Dairen in

suppressing smuggling by their own nationals, gave a

fatal blow to the smuggling organisation and made its

continuance impossible. The complete dissolution of

such organisation could be seen from the prompt removal

of all the warehouses which were specially erected along

the coast at Ch'angli, Peitaiho, Chinwangtao, etc., for

storage of smuggled goods, and from the undeniable fact

that up to the end of the year no smuggled goods had ever

been reported to have been landed at any point along the

coast between Taku and Shanhaikuan. Movements, it is

true, of the so-called special goods along the Peining

Railway were still noticeable for some time after

Page 217

/ February

Page 217

Page 217