4

In the course of last

Ying-po's activities are ostensibly directed, and a reference to the list of strikes in Canton in 1921, enclosed in my despatch of the 11th March, will show with what success they have been crowned. The lowest increment of wages shown on that list is at the rate of 20 per cent, the highest at the rate of 50 per cent. year, however, the wages of all women and girls employed in the silk filatures were doubled. The Canton mint has just entered into a contract for the supply of 20,000,000 ounces of silver to be converted into subsidiary coinage, and the explanation given for this large order is that, owing to the general increase in wages, there are not enough 20-cent pieces the local unit of currency-in circulation to satisfy the demand.

10. The new situation thus created having admittedly to be faced, it remains for the foreigner frankly to recognise that for him the Chinese world has changed, that it is incumbent on him to change with it, and that the change will least, be felt by his cultivating a sympathetic understanding with the people by whom he is surrounded and

with whom he trades.

Even to-day, as I found when settling the strike in Hong Kong, there are few Chinese who will not respond to the call of abstract right (reason) and fair dealing.

11. A preliminary statement of the shipowners' version of the negotiations during the strike having now been published, I have the honour to enclose a copy thereof, to be read in connection with the despatch above quoted.

Your Excellency,

Enclosure 2 in No. 1.

I have, &c.

Shipowners' Committee to Sir R. Stubbs,

J. W. JAMIESON.

Hong Kong, March 14, 1922. I HAVE now the honour to transmit a preliminary report on the settlement arrived at with the delegates of the Seamen's Union in connection with the recent strike. A résumé of the Government negotiations was contained in the "Gazette of the 11th instant, and the object of this communication is to set forth the settlement from the shipowners' point of view in conjunction with the Government communiqué just referred to. A full and detailed report of the shipowners' negotiations will be submitted to you as soon as possible, but I consider the subject-matter contained in this preliminary statement will be of general interest.

wages, you

the

Certain points in the shipowners' negotiations, apart from the question of were touched upon in the official "Gazette," and it now remains to submit to signed preliminary agreement referred to in the Government record of proceedings. The document which is attached reads as follows:-

"It is hereby agreed between the undersigned parties that the following are the terms of settlement on the matters in dispute between them:-

"1. The scale of wages paid at Hong Kong and in force ou the 12th day of January, 1922, shall be increased as follows, and shall apply as from the 1st January, 1922:-

Per cent.

"(1.) Chinese river steamers

30

[

(2.) Other Chinese steamers up to 1,000 tons deadweight

30

"(3.) Hong Kong, Canton and Macao Steamboat Company

(Limited)

20

+

"(5.) Coasting steamers

"(4.) Other British Companies' river steamers, taking the scale of the Hong Kong, Canton and Macao Steamboat Company (Limited) as a basis

20

20

(6.) Java lines

15

(7.) Pacific lines

15

15

FK

(9.) Australian lines

15

"(8.) European lines

"2. A date will be fixed for the general return to work.

From the time of

leaving until such date, men will receive half-pay according to the new scale.

Men may

5

be reinstated on any of their own company's vessels or such vessels as may be mutually agreed upon. If positions are not available for men ready to return to work as above it is agreed that half-pay shall continue for such period as the men are not employed, but not exceeding five and a-half months from the date of the general return to work. This half pay will be administered from a fund under the control of a duly appointed administrator.

3. The owners agree to assist in inaugurating a system of engaging crews which will minimise as far as possible any irregularities which may exist in connection with the pay of seamen.

Signed at Hong Kong, this 5th day of March, 1922.

"R. SUTHERLAND, Chairman, Shipowners'

Committee.

"J. W. JAMIESON, His Britannic Majesty's

Consul-General at Canton.

"CHAK HON KE

(Chinese Chop.)

"Lo Tsux MAX

(Chinese Chop.)

"LUK KING FO, Secretary to Commissioner

for Foreign Affairs, Canton."

The agreement as above was arrived at after some two months of negotiation. To those not intimately connected with the subject it will require explanatory remarks. I would therefore beg leave to comment as follows:-

Clause 1. This sets forth the scale of wages agreed. For your information I would say that, in order to give the exact effect of the strike as affecting shipping- the key industry of the colony-I requested Messrs. Lowe, Bingham and Matthews to draw up a statement on the settlement made, and I attach same hereto. The figures submitted were arrived at by the chartered accountants from data obtained directly from the steamship companies concerned, and, in my opinion, represent as accurately as possible the margin of compromise between owners and seamen's representatives.

It will be noted that while generous concessions have been made in respect of Chinese-owned steamers, the seamen's delegates have met the position very fully as regards other lines. The preliminary difficulty in negotiations was that the union demanded a flat percentage of increase to be effected over all lines, notwithstanding that some shipping companies comparatively recently had voluntarily given an increase of some 18-25 per cent. to meet the higher cost of living. It was on this point that it became apparent at the outset that difficulties were almost sure to arise between the union and the owners. It will be found, therefore, that as regards companies who had not raised the scale of wages for a series of years the seamen's demands have been met to a considerable extent, and it was the general opinion of the shipping companies I have had the honour to represent that substantial concessions should be made by such lines. It is with pleasure that I have to record that the Chinese owners were aruong the first to acquiesce with the suggestion put forth that this immediate increase should be made.

It will be noted that the shipping companies have been formed into groups, and negotiations eventually progressed upon a basis of percentages for various lines. The result has been that where low pay was in evidence the owners were willing to concede generous terms, and although the original seatoen's demand in this particular respect is for an increase of 40 per cent. it will be seen that they eventually accepted 30 per cent. In contradistinction it must be pointed out that in the case of the higher-paid services, such as European and Pacific lines, the original demands called for between 30-40 per cent. increase, and the settlement resulted in the men accepting 20 per cent, and 15 per cent. The attached schedule of percentages speaks for itself, and, I consider, representa a correct and impartial résumé of the agreement arrived at.

Dr. Jamieson's attitude at the time he entered the negotiations until the final settlement of dispute was that he would not be party to anything unless it was fair to both sides, and while the commercial problem was becoming more difficult - I give it as my opinion-shipowners, in making such concessions as they have done, were not unduly influenced by anything other than the grave commercial hold-up and of the hardship entailed on those entirely disinterested in points of disagreement between the union and shipowners.

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