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[This Document is the Property of His Britanic Majesty's Government.]
CHINA.
CONFIDENTIAL.
SECRET
[February 3, 1926.]
SECTION 1.
495
[F 518/1/10]
No. 1.
MEMORANDUM RESPECTING CANTON.
CANTON has been the scene of two wars with China, 1839-41 and 1856–57. In each case British military action, chiefly naval, had to be taken after a prolonged course of provocation by the Chinese. In some respects Canton is cut off from the rest of China, and there is no through railway communication with the north. It is also more immediately and exclusively in touch with the British Empire than any other part of China, since it is situated about a hundred miles up the Pearl River, at the mouth of which is the British colony of Hong Kong. The Cantonese people, however, are scattered very widely throughout China, and, being on the whole more intelligent and more restless than other Chinese, have had great influence on its modern development, usually in a revolutionary and progressive direction.
The latest phase in the history of Canton opens in 1918. In that year the Kump of the Peking Parliament, consisting of the Kuomintang party which asserted that they had been illegally ejected from Peking by Tuan Chi-jui and the militarists, set up a rival existence at Canton and claimed, ineffectively, to be recognised by the Powers as the Government of China, This movement was led by Sun Yat-sen (who died in the spring of 1925). It continued to press for its share of the customs revenues, which are collected in the interests of the Peking Govern- ment and the foreign bondholders. It offered to secure to the latter their due ratio, but objected to the balance being remitted to the Central Government for purposes contrary to their wishes. Attempts were at first made by the Diplomatic Body in Peking to secure allotment of these revenues to Canton, but these soon ceased. The foreign Powers insisted on the principle of maintaining the integrity of the customs revenues, and when Canton threatened to seize them in 1918, 1919 and 1920, we proposed to take the following action:-
(a) The Government of Hong Kong should intercept all cargo for Canton and
refuse entry to all cargo from Canton,
(b) Customs duties at Canton should be paid by British subjects to His Majesty's consul-general, who would hold them in trust for the Inspector- General of Customs,
(c) If necessary, a British naval guard might be placed round the custom-house
on behalf of its British owner, the inspector-general.
(d) All Allied vessels should be asked to refuse to carry Chinese postal matter
to or from any port in Kwangtung or Kwangsi.
Canton gave way at that time. Another attempt to seize the customs was made in 1923. This led to a naval demonstration, and Canton again gave way.
These facts are quoted to show that a genuine grievance has existed for some time at Canton, and that the methods of boycott which are being now applied against our trade resemble the methods which the foreign Powers themselves proposed to use against Canton. During this time the Government of Hong Kong was in favour of showing consideration to the Cantonese grievances; and Canton in general, and the Kuomintang in particular, have been distinctly anti-British, as can be seen in their connection with and support of the Hong Kong seamen's strike in 1922. Early in 1923 a new factor was introduced by the opening of a Soviet consulate at 1, and from that date the dissemination of advanced political theories and anti-foreign symptoms amongst students and officials became more manifest. At the same time, the extremist wing of the Kuomintang obtained control of the party machine, including Dr. Sun. Dr. Sun died in March 1925, and this removed the last moderating influence.
In May and June there was fighting in Canton between an army of Yunnanese mercenaries, who were in temporary occupation of the city, and a combination of a Cantonese force with the cadet army of the Whampoa Military College (trained and armed by the Bolsheviks see Annex II). On the eve of the fighting the Yunnanese commander stated to His Majesty's consul-general (Peking despatch
342 of the 19th May):
3296 [14166]
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