remark no remedy has been found as yet after twelve

months correspondence) is an instance to show that

the tendency of the Chinese to resort to this particular

kind of warfare must be reckoned with. If other instances losure 9.

are required I attach a brief précis of the facts

connected with other recent boycotts

one of which,

that of the S.S. "Fat Shan" --is a most humiliating

page in the commercial history of this Colony.

And Hongkong is not the only country where the

need of withstanding boycotts by Chinese is being

recognised.

I have ascertained that in the Netherlands India

the Government has suffered much trouble from these

combinations. Last year the Government there was

confronted with two boycotts by the Chinese population.

One was of panese shopkeepers and merchants for

political reasons. This was accompanied by public

and open canvassing against the trade carried on by

the Japanese, and the Government of Netherlands India

took the most stringent Police measures to stop such

support of the boycott. The second was a boycott aimed

at the Government itself, in consequence of certain

measures it took in connection with the riots by

Chinese in Sourabaya after the establishment of the

Chinese Republic. The Chinese closed their shops

and refused to trade, in order to compel the Government

to modify the policy it had adopted towards the Chinese.

The Government of the Netherlands India was obliged

to deport to China some eighty Chinese merchants and

traders in order to stop the boycott; and I am

informed that it is now considering what statutory

powers can be taken to strengthen its hands in combatting this newly found and now favourite weapon

of the

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