Telegram from the Governor of Hong Kong to the Secretary of State for the Colonies.

Dated 16th October.

(Received Colonial Office 8.10 a.m.16th October,1926)

Confidential My telegram of 12th October Boycott position as follows Pickets entirely withdrawn from the frontier and no restrictions on crossing to and fro of passengers and commodities at Shamen pickets reported to have ceased functioning also.Strike Organizations andpickets however have not been disbanded and efforts to continue the boycott by intimidation may be expected course of events cannot be foreseen. Passenger traffic between Hong Kong and Canton by steamer greatly increased and the Chinese Companies which ceased running boats in June 1925 have recommenced services. Goods traffic by river steamers still small; but increasing no cargo offering either way for Jardine Matheson and Company and Butterfield and Swire cargo steamers. Traffic on the railway decreased apparently owing to cheaper rates by steamer. Trains crossed the frontier on the eleventh and twelfth but not thirteenth and fourteenth expect regular crossing over will be arranged at an early date but no prospect of resumption of through traffic at present. There is considerable optimism of the community generally that matters will improve it seems certain that Canton desires the resumption of traffic for financial reasons and will therefore endeavour to prevent extremist agitation. We can only await further developments.

C

19473

16 007 1996

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