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with first enclosure-

pressure and intimidation were at once withdrawn, sympathetic strikes ceased, and in the course of a day or two the Colony had resumed its normal life. Beyond a few orderly processions there was no demonstration on the part of the returning seamen and coolies, who were obviously delighted to get back to work.

22.

The

There are certain outstanding features. strike emphasised the absolute dependence of the Colony upon Canton and the immense harm that must accrue to it from an organised boycott. It showed the danger of over- reliance upon cheap coolie labour, with no sort of stake or interest to tie it to the Colony, able at a moment's notice to disappear back into China whence it came. It brought again into prominence the difficulties, experienced once before in the engineers' strike, of getting a grip of the situation when a whole body of labour removes itself out of the Colony back to ite native land, where it is maintained and supported with the connivance of Government authority. A most salient point was the extraordinary intimidation by word of mouth, almost entirely unaccompanied by violence, which brought out Chinese labour like a flock of frightened sheep. The Chinese Members of the Legislative Council kept their houses in abject terror of their lives, and they and the rest of the leading Chinese gave not the smallest assistance, either in putting heart into their compatriots, or in giving the Government the slightest clue to the methods by which the terror was spread.

23.

The following documents are attached:

(A). A copy of a published statement by the Govern- mant regarding the part played by it in the strike negotiations.

(B). A copy of a published statement by the ship-

Owners,

(C). A copy of a despatch addressed on the 24th February to His Majesty's Minister at Peking.

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