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requires early settlement and it is ordered that the
Ministry of Foreign Affairs shall take immediate steps to confer with all parties concerned in order to bring about a satisfactory termination.
Of these signatories the first named has already run away to Paris the second Shanghai and the last on the 1st June to Macao. Brenan saw Eugenechen so called Minister for Foreign Affairs on the 26th May and again on the 28th May with reference to boycott matters but without any tangible result. There is indication that the Canton Government is breaking up. As regards the oil monopoly Bell Asiatic Petroleum
Company suggests that the proposed substitution of tax
for oil monopoly likely to be little if any advantage
so long as the boycott continues. Trade between Canton
and Hong Kong referred to in my telegram of the 13th May
referred to the general trade conditions, both indirect
trade via Shanghai in non-British vessels and direct
trade between Hong Kong and Canton and vice versa both passenger and goods carried by daily steamboats or
junks or otherwise. As regards the extent to which the
daily service is used for trade purposes Chinese
passengers are now travelling more freely by the daily steamboats. This has brought about increased trade
between Canton and Hong Kong and vice versa and although
little or no cargo has been carried so far by the daily service fair quantities are being surreptitiously shipped by junks and devious routes which is the result
of the movements of the Chinese passengers referred to and the consequent restoration of confidence in
Hong Kong's position.