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however remained in the background, leaving it to C. C. fu to direct the proceedings. I may mention here that I learnt some time ago on good authority that the moulders' strike, which has been dragging on in hongkong for some monthe, was started at the personal instigation of Liao Chung-k"ai
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I would bere refer again to the remark in my telegram ko.31 of July 15th reporting the beginning of tle strike, and in my despatch „o.151 of September 11th concerning the bomb sutrage, that a clash with the ex- tremists at present in power must have taken place 30oner or later. I gather from several residents here that in December last, when the Customs surplus question was pro- minent, the enforced withdrawal of the Shameen employees was apprenendod. Ma reason why it did not come to a head probably was that the extremist part was at that time not in full control. the recent attempt to raise the gur- plus question once isore indicates, as suggested in my despatch ho.163 of Jctober 1st on the political situation, the need for some form of anti-foreign propaganda to revive the present „dministration's credit.
For the rest, wien Dr. Sun at one of our inter- views with nim was expuasising the right to strike, my french colleague and I agreed that that was a cormonplace in our own countries. We pointed out however that, in the present instance, no attempt had ever been made to discuss with us such grievancea, if any, as the 'hameer employeen might have. They were simply ordered out of the Conces- sions, without notice to us or consultation with them,
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