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Majesty's Consul Generals at Canton and Manila,

Mr. Fox

seemed certain that things had greatly improved at the

former port and on the 17th June Kr.Layard, in a despatch

copy of which is enclosed, reported that the Manila Agents

of Mesers Butterfield and Swire did not think that the

**

boycott would come to anything there. On the 12th of June

however, Mr.Law, the Hongkong Agent of the firm, informed

Sir F.Lugard that their trade between Hongkong and "anila

had been completely destroyed and explained the steps he

vas taking to come to an arrangement with the Self Govern-

ment Society,

While fully appreciating the extreme dif-

ficulty of dealing with a Chinese boycott and the great and

delicate responsibility attaching to Mr.Law as the repre-

sentative of such immense and varied British interests,

I cannot help sharing in the grave misgivings felt both by

the Government of Hongkong and the Consul General at Canton

as to the wisdom of the stop he has taken in entering into

direct relations with euch an association as the Self

Coverment Society at Canton.

However that may be, I felt justified, without waiting

for

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