Decypher of a telegram from theGovernor of Hong Kong to the Secretary of State for the Colonies.

Dated 31st October.

596

(Received Colonial Office 5.p.m. 31st October 1926)

My telegram of 28th October. Full particulars of inspection of corps (Chapsztui) are given in the fourth enclosure of my despatch Secret of the 5th October. Canton Finance Ministry has published a notification that it has appointed men of this Corps to proceed to Kowloon as well as to Kongmoon Lappa Samahui Kiungchow Pakhoi Swatow "uchow Nanking Lungchow to establish offices for the collection of newtaxes on thesame

system as at Canton. This is clearly attempt to duplicate the customs organization in Kuangtung and Kuangsi Provinces that is

to say that wherever there are maritime or native customs a

collectorate of the Canton Government will be also established.

It cannot be doubted that ulterior object is the extermination

of marttime customs and the attainment of tariff autonomy.

Anti-British Economic Boycott Committee at Canton has passed

Resolution to begin taking stock of British goods stored in Chinese shops or firmsfrom the 1st November. Fifty thousand copies of the form used for this purpose will be distributed to shops etc. in order to fill in particulars. Aim is to re- establish boycott by intimidation of shopkeepers and merchants. Native Hotel Union at Canton has circularized hotel guides not bo receive cr accompany any passengers from or to British ships. Any guide violating this rule will be fined 50 dollars and discharged.

On 30th October I discussed the Canton situation with Brennan who is now in Hong Kong. He fully shares my view that it is the deliberate poliy of Canton Government to destroy foreign treaties and also to underminejandoverthrow the maritime customs. I associate self with last two sentences in telegrar

No.

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