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3.
In my Confidential Despatch of the 16th.
ultimo, I referred to the part played by the Sz Yap Association in
the promotion of the boycott. The Covernment is now in possession of evidence which proves conclusively the participation of various prominent members of the Association, and it has the names of various other persons who have been actively connected with the movement. The Executive Council have unanimously advised that in the event of the continuance of the existing state of affairs these persons should be banished, and this course will, if neces- -sary, be adopted.
4.
There are however signs which would seem to indicate that the boycott is breaking up. There is in the first place, for what it is worth, the expressed conviction of the re- -presentatives of the boycotting areas that they will be able within a reasonable period to bring about its cessation. The local Chinese press too have, with no inspiration from this Government, recently adopted a most satisfactory attitude as typified in the three articles of which translations are enclosed. The Registrar- -General reports that a considerable number of employers have undertaken to purchase punch or monthly tickets and to present them to their employees, refusing them payment for other forms of conveyance; and Chinese have in fact commenced to use the cars again, in number which, it is true, are very scanty but sufficient perhaps to indicate that there no longer exists that intimidation which was so prominent a feature at the commencement. I enclose a report of proceedings held at a meeting of Chinese on the 9th. instant. The remarks made by Kr. Lau Chu-pak would, I think, be generally endorsed by the better class Chinese, and tend to show that there is a growing impatience of the boycott.
5.
I have to confirm my telegrams of the 8th. and 10th. instant en clair versions of which are enclosed. Figures supplied by the Tramway Company in connection with the working of their undertaking have been verified by the Treasurer from their books, and the compensation has been assessed upon the basis of a five per centum dividend, which rate was recently paid to the
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