COPY
ENCLOSURE NO. 2.
74
MEMORANDUM FOR GOVERNMENT.
The trade between Hong Kong and Canton during the past week has not improved, in fact it may be said to have had a set back owing to continued disagreements among Labour Unions. A strike among cargo boat owners at Canton is practically in being which impedes the handling of cargo. There are signs of tightening up the boycott against British ships and there is a good deal of interference. The river steamers under the British flag which are Chinese owned are carrying the same number of passengers but less cargo. The Steam- boat Company have had their earnings both on cargo and passengers greatly reduced.
A Chinese firm called Hin Fat & Co., Ltd., have time chartered the Japanese s/s "KUNUGATA MARU” to run between Hong Kong and Canton. I am given to understand that this steamer is receiving fair cargo support as being under the Japanese flag it is antici- pated the will not be interfered with. There is also a report that Portuguese interests are considering running other vessels with a view to avoiding the difficulties of the British Flag. Movements in piece goods during the past week have been fair but deliveries during the last two days have been on the decline.
(Sa). R. SUTHERLAND.
HONG KONG, 12th November, 1926.