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again, and on guarantee of freedom from arrest. They state that they are not responsible for intimidation in the colony, and to appear at a conference as members of an outlawed society would place them in a false position. Please telegraph reply." From Governor, Hong Kong, to His Majesty's Consul-General, Canton, dated

February 7,

Delegates will be given safe conduct, but union cannot be reopened. Point in last sentence need not arise if delegates come as representatives of seamen in Canton and not of union. Intimidation is undoubtedly rife here and in Canton and Sheklung. Are the union authorities, in view of their statement, prepared to issue public repudiation of intimidation and to make it clear that men who wish to return to work need not fear the consequences?"

On the 9th February the shipowners, on the suggestion of the Government, renewed their offer which had been withdrawn on the 18th January; and the Government thereupon issued the following notice in Chinese, emphasising the point that the offer was not finally binding on either side, but was subject to revision by the arbitrators:

"At the suggestion of the Governor, the shipowners are willing to reinstate their former offer of increased wages, to take effect from the day on which the seamen return to work. This scale of wages is merely a temporary scale pending

arbitration, and is on no account to be taken as a basis from which the arbitrators will work. Addition to it or substraction from it are alike within the sole discretion of the arbitrators. The scale offered is repeated below:-

Per cent.

24

Chinese river steamers

25

Other Chinese steamers up to 1,000 D.W. tons

25

"f

Canton, Hong Kong and Macao Steamboat Company's

steamers

15

"Other British companies' river steamers, taking the scale of Canton, Hong Kong and Macao Steamboat Company as

base

15

Coasting steamers

12

Java lines...

"Pacific lines

74

CC

European lines

7골 10

"Australian lines

In the meantime, the committee of the Tung Wa Hospital had proposed to the Government that they should use their good offices in bringing about a settlement. Other leading members of the Chinese community were subsequently associated with them, and on the 8th February the lung Wa Hospital, as representing the Chinese of the colony, telegraphed to Canton asking the seamen to send delegates to discuss a settlement with them. The delegates arrived on the 12th February, and on the following day at a meeting at the Tung Wa Hospital they declared that they could not carry the matter further until the settlement of the question of the reopening of the Seamen's Union, which had been closed by the Government on the 1st February as being an unlawful society. The matter was accordingly referred on the 14th February to the Government, who, on the 15th February, issued a proclamation in Chinese in the following terms:—

"On instructions from the Government, the Secretary for Chinese Affairs has communicated the following decision to the seamen's representatives :-

"!. The Seamen's Union was closed because it exceeded its legitimate bounds and broke the law of Hong Kong, not because it asked for an increase of wages.

2. The Governor absolutely requires proof of freedom from unlawfulness

before he can change his present attitude,

3. If it is desired to give proof of freedom from unlawfulness, all seamen

and all workmen whom they involved in the strike must return to work and Hong Kong resume its normal condition before it can be considered that proof of freedom from unlawfulness has been furnished.

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4. If all come back to work first on the conditions offered by the ship- owners and await the award of the arbitrators, the Governor will cancel the proclamation closing the union."

The delegates returned to Canton on the 15th February, and they came back to Hong Kong on the 17th February with certain suggestions which were considered by the shipowners on the 19th February. The shipowners' decision was conveyed to the delegates on the 20th February by the Secretary for Chinese Affairs, and the delegates left for Canton on the 21st February. On the 24th February a letter was handed to the Secretary for Chinese Affairs stating that the seamen were not prepared to accept the proposals made.

On the 22nd February a telegram had been received from His Majesty's consul- general at Canton suggesting that there were good grounds for believing that an all-round increase of some 2 per cent, on the owners' original offer would he accepted. On the 24th February the Engineers' Society came forward with a similar suggestion and offered to negotiate for a settlement on this basis.

The Government informed the shipowners of these proposals, and suggested that, as it seemed likely that the offer of such an increase would bring the men back immediately to work and would prevent a general strike, it would be wise to add some 2 per cent, to the figures shown in the notice of the 9th February, which is quoted above. That notice still stood. It pointed out clearly that the shipowners' offer covered only the immediate present, and that the scale would be increased or lowered in the sole discretion of the arbitrators The shipowners added 24 per cent, to their previous figures, and on the 24th February this information was telegraphed to Canton and was communicated to the Engineers' Guild. The seamen refused the new

terms.

On the 28th February His Majesty's consul-general telegraphed that he had information to the effect that, if a meeting between the shipowners and the seamen's delegates could be arranged, there was every prospect of a settlement. On the 1st March a reply was sent by the Hong Kong Government that the shipowners were willing to meet the seamen's delegates. It was added that, in order to avoid further abortive proceedings, the Government considered it to be highly desirable that the delegates should be fully empowered to make a settlement.

A further telegram was sent on the 1st March asking Dr. Jamieson to come to Hong Kong to discuss the situation, and he arrived on the 2nd March. On the 2nd March telegrams were received from the consulate at Canton that delegates with full powers were coming on the 4th March; and they arrived accordingly.

On the 3rd March it was arranged that the Hong Kong Government should not be represented at the conference, but the Government accepted a suggestion from Dr. Jamieson that he should be present in an unofficial capacity. It was further arranged that, in the event of a settlement being arrived at between the shipowners and the seamen, the representatives of the Hong Kong Government should subsequently meet the seamen in order to consider any proposals affecting the Government that they might wish to put forward for discussion. The Secretary for Chinese Affairs, Attorney- General and Clerk of Councils were appointed to represent the Government.

The conference between the shipowners and the seamen took place on the 4th March, and it was announced late in the afternoon that a settlement had been reached.

It was then arranged that the seamen's delegates would meet the Government's representatives at 7 P.M. The meeting took place accordingly, but as proceedings were about to commence Mr. R. Sutherland, Chairman of the Shipowners' Committee, brought in for signature the agreement between the shipowners and the seamen, which had been concluded verbally and had since been set out in writing by the shipowners. Government's representatives thereupon withdrew, as the Government was in no way responsible for the agreement. It was reported later in the evening that the delegates were unable to sign the document as worded, while Mr. Sutherland had no authority to alter the wording in any material particular; and so a further meeting between the shipowners and the seamen was arranged for the following morning.

The

On the 5th March, prior to the meeting, Sir R. Ho-tung approached the Govern- ment with an offer which he was prepared to make in order to facilitate a settlement, and he was informed that he was at liberty to convey this offer to such parties as he might think fit. The Government was unable itself to make use of the offer, as it did not wish to intervene in the economic side of the dispute.

The further conference took place on the 5th March, and an agreement was concluded and signed in the afternoon.

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