5.

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ship. It must further be noted, though I do not think that

this consideration was present in the minds of the Executive Council when it decided unanimously on the policy of prohibi- tion, that the influx of thousands of unemployed and mostly penniless men into Canton would have created a very danger- ous situation there. They could not have been fed for long and it is certain that in a very short time there would

have been rioting which would doubtless have been directed

primarily against the European settlement of Shameen. It is doubtful whether the foreign gunboats at Canton would have been able to prevent the looting of the settlement

but, even if they had been able to do so, the result would

have been great bloodshed and stirring up of anti-foreign feeling, the consequences of which in the present disturbed

state of China would have been incalculable.

I am confident that the policy which we

adopted was justified and in the best interests of all

concerned. It is unfortunate that it gave rise to the most

serious incident of the whole period in a collision between a few police and Indian troops and some hundreds of persons who were trying to make their way to Chinese territory by

road

-

in many cases, probably in most, because they had

been terrorised into doing so. A judicial enquiry into this unfortunate occurrence is now being held and I will

report further on its conclusion.

6.

The only feature of the situation during

these anxious weeks which can be regarded with umixed

satisfaction is the public spirit and of self-reliance

shewn by the non-Chinese communities. As soon as the

seriousness of the situation caused by the strike became

obvious Europeans of all classes came forward to serve as

special constables and as voluntary workers. I record

with pleasure that at an early stage the American Consul-

General came to me with offers of assistance from a large

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