** CONFIDENTIAT

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36829

11 AUL 20

GOVERNMENT HOUSE,

HONGKONG. 10th July, 1925.

560

34

204

With reference to my Confidential despatch

of the 26th June, I have the honour to report the further

course of events in connection with the strike.

2.

The dislocation of business is now fairly complete. Considerable numbers of men are still at work in various capacities, and unskilled labour is readily obtainable, but all regular trades are practically at a standstill. With a very few exceptions the clerks in the Government Service remain at their posts, but subordinate

Government servants, such as postmen, messengers, Launch hands, hospital attendante, scavenging coolies, have gone

out. There have been no defections from the Police.

There is still no anti-foreign feeling apparent in the Colony, and it is becoming increasingly clear that the whole affair is being engineered by the Russian Communists in Canton. Shortly after the strike began a Russian named Dosser was arrested and was deported to Shanghai, where he was rearrested and charged before the Mixed Court. Dosser held a Soviet passport which stated that he was proceeding to Peking at the disposal of the Soviet Embassy, and he was also in possession of a certificate of which I enclose a translation. His non-

arrival in Canton led to two telegrams from the Soviet

THE RIGHT HONOURABLE

Consul

LIEUTENANT COLONEL L.C.M.S. ALERY, M.P.,

&C..

&C.

Endlosure 1.

&C..

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