Gry

33468

648

5. I telegraphed to you on the 21st July

regarding the commandering of the river steamer "Tung On".

This vessel was taken over at the request of the Commodore,

in order to keep open communication with Shameen and to

send supplies and reliefs for the gunboats and for the

garrison and the few residents who remain. The vessel is also used to supply Naval relief to the Armed Launches at

Kongmun. This Government has no interest in the matter,

except that it collects fares from the few passengers who

are allowed to travel, and it would not have intervened if

it had not been for the representation of the Commodore that he had no ship available to maintain these essential

communications. In the circumstances this Government should,

I submit, be called upon to accept any liability in respect

of the expenditure incurred. An account will be forwarded

to you in due course, and I venture to suggest that the deficit on the working should be repaid to us from Imperial

funds.

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6. Very little reliable information is

forthcoming regarding the state of affairs in Canton, It appears to be undoubtedly the case that the strikers are getting more and more restáva and are causing considerable anxiety to the Authorities. A few days ago a small party of soldiers crossed the frontier and seized a number of pigs and the man in charge, whom they subsequently released on payment of $150. A considerable number of Whampoa Cadets under Russian Officers arrived yesterday on the frontier, and accordingly two platoons of native troops were sent out to strengthen the Police. These troops are concentrated at some distance behind the frontier, as it is very possible that the Chinese will attempt to bring

about an incident on the lines of the Shameen incident,

and

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