that powers have been taken to flog persons guilty of violence or threats or sedition, the penalty being one

which is particularly distasteful to the Chinese.

I attach also a copy of a statement which

I made at a meeting of the Legislative Council on the 9th

Enclosure 3.

July.

9.

refraune et

30695-

Representations were made to me not long

after the commencement of the strike that some missionaries

including six ladies, of the American Maryknoll Mission were in danger at Yeung Kong, a small port same 120 miles South of Hongkong, I accordingly sent the Lighthouse Tender "Stanley", which however failed to get into communication, as two fathers who managed to cross the

shallow river bar in a native boat, failed to return and

there was a misunderstanding as to signals. The party was subsequently rescued by the U.S. Destroyer "Simpson" I attach a copy of a letter which has been received from

the Mission.

10.

The situation in Canton remains uncertain.

The intense feeling aroused by the Shameen incident is dying down, and such information as can be obtained is to the effect that the more responsible parties in the Government may shortly be strong enough to suppress the extreme communist element. Whether they will be success- ful, and whether, if successful, they will terminate the Hongkong strike and discountenance the British trada boycott are questions,, the answer to which it is impossibl to foretell. I have reported upon the situation is my telegram of the 6th July. Reliable information has since

been received to the effect that there is considerable

militery activity on the Pearl River, and gangs of coolies

are working at the Boca Tigris forts. The Whampoa Russian

trained

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