i

40

apathetic on this question, and they have accordingly had recourse to the tactica o terrorism, which proved so successful in the seamen's strike in 1922. The Chinese have been and still are most reluctant to go, but an anonymous letter or a whispered remark by an unknown passer-by puts them into a state of such abject fear that they simply dare not carry on their work. There is in the case of many of them the added threat of reprisals against their families in the country, which the Communists would be quite capable of putting into effect. A large number of workers are still standing fast, notably the members of the Chinese Engineers and Mechanics Union, which is the most important of all the unions, It is reported that at a recent meeting the head of this union stated that the matter at issue was a political one, and as such did not concern labour in the colony, and in any event the question could not be decided by the Hong Kong Government.

was at

4. There is at present no sign of any anti-foreign feeling. The colony first flooded with pamphlets from outside, but the effect of these was to frighten the people rather than to inflame their passions. Chinese employed by foreigners have for the most part given due notice that they are being compelled to leave through circumstances beyond their control, and in cases such as that of the Peak Tram and Cross-Harbour Ferry the men have instructed the Europeans who are to take over in the method of operation. The Peak Tram is still operated by Chinese.

The seamen of the ferry service reported this morning that they must come out to-night, but they have since stated that the matter is not decided, and they will work to-morrow. noteworthy that the first workers to strike were the motor-men and conductors of the low-level tramways. These trams carry 70,000 people daily, practically all of whom are Chinese.

The recent repulse of the attack on Shameen has not apparently affected the local situation, and the opinion is freely expressed among the better-class Chinese that the large majority, both in Hong Kong and in Canton, are glad that the Communist section of the Cantonese army has been taught a salutary lesson.

It is

5. Early steps were taken to get into working order the machinery which had been carefully prepared after the seamen's strike, with the result that everything was in readiness when the strike began on the 20th June, and there was no dislocation of any important service. The volunteers were mobilised on the 21st June, and on the saine date guards were posted at the Electric Light Works, Water Works and other important points. On the following day controllers of labour, food and transport began to function, and volunteer helpers, comprising practically the whole of the foreign community, men and women, were speedily enrolled and were allotted to various duties. The Americans in particular have shown themselves eager to help. The Ambulance Corps and the boy scouts were called up, the former to assist at the hospitals and the latter to give help wherever needed. The boy scouts are acting as messengers, are delivering telegrams for the telegraph offices and are generally making

themselves useful.

6. The Chinese community have been coming forward very readily to the assistance of the Government, under the energetic leadership of Mr. Chow Shou-son and Mr. Kotewall, their representatives on the Legislative Council. Special constables are being enrolled, committees are being formed to deal with various questions, as, for instance, the distribution of food, and a number of Chinese are doing most useful work in censoring Chinese letters, telegrams and newspapers. The Chinese of the new territories were among the first to volunteer their help, offering both their labour and their produce in the shape of vegetables and pigs. Their offer is gratifying evidence of the goodwill which was recently cemented at the Kam Tin ceremony reported despatch No. 231 of the 29th May, 1925.

my

7. I consider it to be necessary for the Government to take to itself the fullest possible powers to deal with any emergency, and I enclose copies of regulations* which have been made under "The Emergency Regulations Ordinance, 1922," together with a copy of a proclamation* putting into forceThe Peace Preservation Ordinance, 1886.” I decided not to re-enact the regulations which, on the occasion of the seainen's strike, gave powers to commandeer labour, as such regulations would forin obvious material for hostile propaganda, and labour is being readily obtained, subject to police protection being provided. It will be seen that the export of rice, flour, tinned and preserved foodstuffs and money has been prohibited, and that a kind of moratorium has been granted to Chinese banks. These banks had been involved in some difficulty owing to over-speculation in connection with the land boom, which has collapsed, and the present crisis brought a run upon them which they could not withstand. The stoppage of rice

• Not printed.

41

exports is reacting upon Canton, where prices are soaring, and the authorities are hard 515 put to it to feed the strikers who have come penniless from Hong Kong. A number of strikers and others have returned to Hong Kong, finding conditions preferable bere. and it is stated that many others would come back if they were not prevented

by force.

8. I referred at the time of the seamen's strike to the extraordinary effect that intimidation produces upon the Chinese mind. The matter is one which it is difficult to cope with, but I am satisfied that most useful work is being done in this connection by means of propaganda which is being edited and issued by a Chinese committee, to all

appearance spontaneously and without the prompting of the Government. The printing of statements of fact is done in the gaol, and other printing is in charge of the Missions étrangères, who have kindly lent their press. The American consul has volunteered to supply contributions from American missionaries in China, which may prove useful in putting the true facts of the situation before the world. Copies of two telegrams received from him have been passed on to Reuter,

I enclose a copy

of a statement* which I made at a meeting of the Legislative Council on the 24th June. I am satisfied that the measures taken to reassure the community are having an excellent effect in putting a stop to the panic which at first prevailed.

9. Another method of combating terrorism, most comforting to the Chinese, is the display of the forces available to the Government for the preservation of peace and good order in the community. To this end, in addition to strong police pickets, the navy, troops and volunteers make route marches through the town from time to time, the last named with their armoured car, which is particularly reassuring.

10. You will have gathered from what I have written that there is nothing is the situation at present which gives any ground for apprehension from the point of view of the safety of the colony. It must, however, be borne in mind that there is a con- siderable force of troops in Canton trained, armed and officered by Russians, that the Russians are supplying money for the support of the Hong Kong strikers, and will do all in their power to harm Hong Kong. I am, however, informed to-day that the commander-in-chief of the Cantonese army is sending down an sound this Government as to possible method by which friendly relations between emissary privately to Hong Kong and Canton may be restored. I took the opportunity of the arrival in the colony yesterday of Vice-Admiral Sir E. Alexander Sinclair, en route to hoist his flag, to discuss the situation with him. There is no British warship at present in port, owing to the demands from all parts of China, and I hope that no occasion will arise to call for further naval assistance here.

[F 4054/2/10

ANNEX X.

I have, &c.

R. E. STUBBS, Governor, &c.

Consul-General Sir J. Jamieson to Mr. Austen Chamberlain.-(Received August 20.) (No. 18.) Sir,

Canton, July 9, 1925. WITH reference to the local political situation, I have the honour to enclose herewith an extract from the "Canton Gazette" of the 8th July, 1925.

Enclosure.

I have, &c.

J. W. JAMIESON.

Extract from the "Canton Gazette" of July 8, 1925.

THE INAUGURATION DECLARATION OF THE CITY GOVERNMENT OF CANTON.

(Translation.)

UNDER the oligarchy of the Kwangsi militarists in 1919, the city administration of Canton was languishing in its stunted growth. Since 1920, when the provincial armies routed the usurpera, the city administration assumed its normal and modern existence. However, after the rebellion of the 16th June, 1922, the city administration

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