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Canton, omsed to wane.

10. As already reported the äver steamers except certain (Chinese owned vessels ceased to run very early in the strike, but

on 10th July all stemers struck and communication with Canton was

severed.

It was then agreed, in conjunction with His Excellency the Governor of Hongkong, that the 8.3."TUNG Œ" should be taken over by the Government for the purpose of maintaining communicatin a with Canton, and I agreed to wipply a Naval orew to man the vessel In view of the fact that His Excellency the Governor was anxious that the vessel should carry passengers in order to defray partly the cost of the vessel 1 directed that although she was run by and in command of Naval personnel, that she should continue to fly the

The red ensign but should fly the white snsign at the masthead. Consul General, Canton, and Senior Naval Officer, Wont Elver, attached great importance to the display of the white ensign. This vessel is also being used to convey soal and

stores to Kongman for the Armed Launohen.

▲ copy of the orders issued to Lieutenant F.G.Emley, R.N., H.M.S."TITANIA", who was placed in command of the 5.5."TUNG

Q", is attaghad.

11. X.M.9."DIOMAIR" arrived on 8th July, 1925, and H.M.S."O(HOO.@" or Sunday, 12th July, and Captain 0.E.Kennedy- Purvis, J.M. and Captain A.R.W.Woods, D.3.0., 3.N., exchanged commands on Tuesday, 14th July, 1925.

12. Although it is probable that this last wek will prove to have been the most difficult and that ocnditions may improve in the future at Hongkong, this can in no way be relied upon and whilst present conditions continus in South China, I am of the opinion that the minimum forces required at Hongkong and for service at South Chinese ports is 1 Cruiser, 2 Sloops, 1 8/1

Depot...

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