HC Deb 20 May 1936 vol 312 cc1172-3
5. Mr. CHORLTON

asked the Secretary of State for Foreign Affairs whether he has yet been able to ascertain what restrictions have been placed by the Japanese authorities on the number of Chinese revenue cutters in Chinese territorial waters covered by the Tangku truce; and what reply the Japanese Government have given to the representations of His Majesty's Government as to the difficulties experienced by the Chinese authorities in combating smuggling activities?

11. Mr. PARKER

asked the Secretary of State for Foreign Affairs whether he has received any report of the extensive smuggling in North China since 1st August of last year and its effect upon both the Chinese Government's revenue and the interests of foreign trade and whether His Majesty's representatives have made any representations to the Government of Japan on the matter?

Mr. EDEN

According to my information, there is at present no precise restriction as to the number of customs vessels that may operate in the coastal waters of the demilitarised zone. So far as these vessels are concerned, the real difficulty would seem to lie in the condition made by the Japanese military authorities that they shall not carry arms in this area. The situation is receiving the close attention of His Majesty's Government and the difficulties experienced by the Chinese authorities in combating smuggling activities have recently been brought to the urgent notice of the Japanese Government by His Majesty's Ambassador in Tokyo. The reply of the Japanese Government to these representations was to the effect that the present smuggling campaign must be attributed partly to the high tariff rates imposed by the Chinese Government, and partly to lack of interest on the part of Chinese local authorities in safeguarding revenues which accrue to the Central Government.

Mr. LEACH

Will the right hon. Gentleman convey to the President of the Board of Trade the warning therein contained as to the danger of high tariffs?