The natural reaction to the imposition of the greatly increased import duty rates introduced by the Government at frequent intervals since the restoration to China of tariff autonomy" was an immediately observable increase in smuggling on both the sea and the land frontiers of this large continent. The growth clandestine trade was most noticeable at first in South China, with Hongkong, Macao, and Kwangchow-wan as principal smuggling bases; but the whole coast-line of the country soon became involved in the same IMlieit pursuits. The Chinese littoral opposite Formosa was found to be infested with motor craft engaged in the profitable business of "running" cargoes of highly taxable commodities from Formosan ports to the scores of small towns and villages' scattered along the island-studded coast of Fukien; and the much-indented northern coast opposite the Kwantung Leased Territory rapidly became an equally favourable area for the con-duet of such illegal activities, partiularly after the Chinese Maritime Customs lost control of the movement of vessels and cargoes at Dairen Gin the Leased Territory) and. the other Manchurian ports, The building-up of an organization adequate to the countering of intensive smuggling operations on such extensive frontiers has been work of some magnitude, but a stage has been reached where it may be said that, " good part of this organizing work has been accomplished, great many of the frst objectives aimed at by the Preventive Seeretarian had been arrived at by the end of the year under review.
Some of the measures taken by this special Customs department since it was instituted to deal with the smug-ling problem four years ego are as follows: a strong preventive force has been recruited and trained for duty fon sea and land; the coast has been Givided into patrol sections, and stations and barriers" have' been, established at strategic points along the coast-line; regulations have been drawn up and approved by the Government—all with a preventive beat ing—for the direction of preventive officers when on duty, for the coutel of sea-going junks, for the rendering of ships' manifests, for the control of Customs brokers, or the control of towed trafic between Hongkong and Canton, for the bonding of general merchandise, and for the control of bunker coal and stores for ships' us the "drawback system, which had been abused, has been abolished; and all trading between China and' foreign countries by steam and motor vessels of less than 100 tons has been 'The year under comment was: marked' by the completion of the shipbuilding programme referred to. in previous reports; by the promulgation of the Preventive Law on June 19; by the bringing under control, in ce-operation with the Postal authori. ties, of a former channel for the distribution of smuggled goods through post offices situated near the fron-Hers of the country; by a further revision of the existing junk regulations and manifest regulations, re. spectively; by the opening of five new stations and three barriers on the coast, and five stations and. one barrier on the land frontier "at various points along the Great Wall, of China; by the institution of a so-called "control station system" for Junks, whereby such craft trading with foreign countries are compelled to report on the coast at specific points of arrival and.departure: and by strengthening of the land forces and of certain of the land defences,
Text read from the printed page and cleaned; old type leaves the occasional error.