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ANNEX XI.

Mr. Palairet to Mr. Austen Chamberlain.—(Received November 17.) (No. 714.)

HIS Majesty's Chargé d'Affaires, Peking, presents his compliments to His Majesty's Principal Secretary of State for Foreign Affairs, and transmits herewith a copy of an enclosure in Canton despatch No. 92, dated the 11th September, 1925, respecting the anti-British boycott.

Peking, September 30, 1925.

Enclosure.

Boycott of British and Japanese Goods in Canton District, OWING to the general cessation of trade of all sorts in Canton, and the rupture of communications between Shameen and the city, it is difficult to gauge the real strength of the boycott movement in Canton, but there is good reason to believe that, as far as British goods are concerned, it is completely effective. During the month of July, the native press was full of accounts of the preparations being made by the Students' Union, the Economic Boycott Committee, the Strikers' Unions, &c., to organise a thorough boycott of British, Japanese and French goods throughout Kuantung. During August, however, the names of the other two nations gradually dropped out, and by the end of August they were seldom mentioned in manifestos and similar publications. There is now an effective boycott of British shipping in operation, no ship which has even called in Hong Kong on the way up, of whatever nationality, being permitted to land passengers or cargo in Canton. Notice has just been given that any non-British firm may open offices in the city, on complying with certain conditions, such as the re-employment of old employees, registration with the Strikers' Committee, &c.

2. Canton, with Moscow at her back, has long been a hotbed of anti-foreign propaganda, and has no need of instigation from other parts of China. The incident of the 23rd June, as related in the local press, aroused enough genuine feeling in the propaganda-fed populace to make the organisation of an effective boycott a simple matter.

3. As regards intimidation, this has principally been adopted for the purpose of preventing the return of strikers and others to Hong Kong. Considerable barbarity has been practised on those caught attempting to evade the pickets, many such persons having been chained to palings in the sun for days, and otherwise maltreated Persons suspected of supplying food to Shameen have been similarly treated. A number of employees of British firms have been seized and

tried" by the Strikers' Committee, the offence being styled "Acting as dog-runners to the Imperialists," whatever that may mean.

4. The local Government is now in the hands of Red extremists and Bolshevik agents, and can justly be described as prime mover in the boycott movement. After the assassination of Liao Chung-k'ai, Finance Minister to the Nationalist Govern- ment, he was publicly belauded by some of the chief personages in the present Government as the arch-anti-Imperialist, who used all his resources to help the people in their struggle against imperialism, in other words, in their anti-British boycott. Wang Ching-wei, one of the committee of three directing the Government, publicly stated (as reported in the "Canton Times") that Liao had been "helping the people in the present anti-Imperialist strike.' One of the avowed aims of the Nationalist Government is to secure the abolition of unequal treaties, to which end their only weapon is the boycott, so that it is hardly necessary to labour the question of their complicity therein.

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5. There is not much evidence up to the present that other nationalities are taking advantage of the present position to push their own goods. The Nangyang Brothers Tobacco Company are doing their best to supplant the British-American Tobacco Company, by a campaign of slander and other means, the British-American tobacco sales having completely stopped. Trade in general is, however, so poor at present that very little has been accomplished by other nationalities in this direction. remains to be seen whether they will avail themselves of the kind permission of the strikers to open offices in the city.

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The boycott of the British in Wuchow was so complete that they found it impossible to keep themselves supplied with food, and had to be evacuated on the 517 20th July. A few of them have since returned there, but they have great difficulty in procuring supplies of any sort.

All British subjects have left Kongmoon, except the customs staff, and the boycott of British ships is in full force.

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ANNEX XII.

Consul-General Sir J. Jamieson to Mr. Austen Chamberlain.—(Received December 10.)

(No. 55.) Sir,

Canton [undated. WITH reference to the local political situation, I have the honour to enclose herewith a copy of despatch No. 114 to His Majesty's Minister, Peking, dated the 2nd November, 1925.

I have, &c.

(No. 114.) Sir,

Enclosure 1.

J. W. JAMIESON.

Consul-General Sir J. Jamieson to Sir R. Macleay.

Canton, November 2, 1925. BEYOND glowing accounts in the Chinese press of the victorious achievements of the cadet armies, there is little to be ascertained as to the actual state of affairs on the eastern front. Two days ago there was an unconfirmed rumour, however, to the effect that by an enveloping movement the forces nominally under Ch'en Chiung-ming had in the Haifeng district cut off Chiang Chung-cheng from his base. The offensive on the part of the anti-cadet party elsewliere would appear to have completely broken down,

2. The opening of the postern on the British bridge has not resulted in any untoward incidents, although foreigners continue to be molested in the neighbourhood of the French bridge. All Chinese and non-residents on Shamien must, according to a recent announcement of the Strike Committee, obtain permits from the latter with photographs attached. A translation of their regulations concerning shipping, commerce, &c., is appended.

3. A statement made to my German colleague by C. C. Wu asserts that there are only thirty-eight Russians in the Government service, and one wonders, if that be the case, what the rest are doing,

4. There are, I am informed, four natives of India in the city connected with the anti-Imperialist agitation, and I am endeavouring to have them tracked down. The chief of police, whom I approached indirectly in the matter, refuses to hand

I have, &c.

them over.

(Translation.)

Enclosure 2.

An Important Announcement.

J. W. JAMIESON.

THE All-China General Labour Union and the Canton-Hong Kong Strike Committee, previously in conjunction with the Department for Mercantile Affairs, the Bureau of Public Safety and the Foreign Office, issued special import and export permits for the convenience of business and for the protection of the strike. Recently circumstances have undergone change. At a general meeting of the representatives of the Canton-Hong Kong strikers it was formally voted that special permits should be cancelled. Our unions have resolved that after this cancellation the arrangement for the future shall accord with the following regulations :-

1. Gouda via Hong Kong or Macao, of whatever country, shall not be permitted to come to Kwangtung; and goods exported from Kwangtung, to whatever country consigned, shall not be allowed to go to Hong Kong or Macao.

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