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and the British merchants of Hong Kong is at least 200,000 dollars per day. If Swatow can follow Canton in matters of strike and boycott, her importance will be on a parity with that of the provincial capital.

As Imperialism is now recognised by the National Government as the real enemy, they will do all they can to support the strike against it.

The Nationalist Government will do more than merely help the working class; they will support them, encourage them, and direct them in their attacks upon Imperialists.'

How powerful the strike is! We have never had anything like it in our diplomatic history since the famous opium war. It is because of this that the Nationalist Government is so anxious to help and support the movement in Swatow, so that the struggle may continue until the very life of Hong Kong is wrung out of the colony.

In dealing with foreigners, continue the severance of economic relations with the British. British residents in China who are willing to obey Chinese laws and jurisdiction shall have our adequate protection for their lives and properties. Those who refuse to put themselves under the control of the Chinese law shall be driven out of the country.

We strikers are not against the British residents as individuals. We are against Hong Kong Imperialism. We firmly believe that some day or other we shall overthrow their British Imperialism.

But there is American Imperialism, Japanese Imperialism, French Imperialism, &c. You will ask: "What attitude should we maintain towards these? " For the present we shall deal with the British alone, and give the Americans, the Japanese, and the French time to learn from the lesson being taught to the British.'

Loss of Prestige.

Mr. Stanley Dodwell, head of the firm of Dodwell and Co. (Limited), which carries on a vast trade in the Far East, and vice-president of the China Association, confirmed Mr. Leefe's statement of the situation in Hong Kong.

"

The most serious aspect of the present condition of Hong Kong is the total loss of prestige," he said. "The plight of trade has become so bad that negotiations have twice been set on foot by the British with the authorities at Canton with a view to stopping the boycott. Such action has never at any time before been contemplated, and it means that our prestige in China is shattered. The only British goods which now reach Canton are sold first to Chinese merchants, who send them to Canton by devious routes. The bulk of them go viâ Shanghai or Formosa, and this again entails an incalculable loss of prestige. The English Chinese of Hong Kong, who provide much of the financial support to British commercial undertakings and are consequently losing their money. are amazed that Britain should tolerate a boycott by Canton. The Union Jack has lost its meaning to them. The situation is now one of extreme difficulty, because firm action against Canton would in all probability inflame the North of China, where the boycott is ending.

"We blame the Government for not having shown more firmness at the first, when it was possible.

"The remedy which the China Association and other influential bodies are urging on the Government is that a man of strong personality should be sent to China to deal with the situation. We regard this as the only step which can be taken to extricate Hong Kong from the plight into which it has fallen."

Mr. Dodwell also believes that the trouble has been caused by the agents of Bolshevism. Russians," he says, "living on the borders of China, who speak Chinese and look like Chinamen, are used by the Soviet to take charge of the strike and student organisations. Moreover, the people of Canton are now well armed with British arms which were captured by the Bolsheviks at Vladivostok soon after the war. They possess rifles, ammunition, and even artillery, which would make a raid by gunboats a hazardous adventure."

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ANNEX XXI.

Treaty between the United States of America, Belgium, the British Empire, China, France, Italy, Japan, the Netherlands and Portugal relating to Principles and Policies to be followed in Matters concerning China.-Washington, February 6,

1922.

ARTICLE 1.

THE contracting Powers, other than China, agree—

1. To respect the sovereignty, the independence and the territorial and

administrative integrity of China;

2. To provide the fullest and most unembarrassed opportunity to China to

develop and maintain for herself an effective and stable Government;

3. To use their influence for the purpose of effectually establishing and main- taining the principle of equal opportunity for the commerce and industry of all nations throughout the territory of China;

4. To refrain from taking advantage of conditions in China in order to seek special rights or privileges which would abridge the rights of subjects or citizens of friendly States, and from countenancing action inimical to the security of such States.

ARTICLE 2

The contracting Powers agree not to enter into any treaty, agreement, arrange ment or understanding, either with one another, or, individually or collectively, with any Power or Powers, which would infringe or impair the principles stated in article 1.

ARTICLE 3.

With a view to applying more effectually the principles of the open door or equality of opportunity in China for the trade and industry of all nations, the con- tracting Powers, other than China, agree that they will not seek, nor support their respective nationals in seeking—

(a.) Any arrangement which might purport to establish in favour of their interests any general superiority of rights with respect to commercial or economic development in any designated region of China;

(b) Any such monopoly or preference as would deprive the nationals of any other Power of the right of undertaking any legitimate trade or industry in China, or of participating with the Chinese Government. or with any local authority, in any category of public enterprise, or which by reason of its scope, duration or geographical extent is calculated to frustrate the practical application of the principle of equal opportunity.

It is understood that the foregoing stipulations of this article are not to be so construed as to prohibit the acquisition of such properties or rights as may be necessary to the conduct of a particular commercial, industrial or financial under- taking or to the encouragement of invention and research.

China undertakes to be guided by the principles stated in the foregoing stipula- tions of this article in dealing with applications for economic rights and privileges from Governments and nationals of all foreign countries, whether parties to the present treaty or not.

ARTICLE 4.

The contracting Powers agree not to support any agreements by their respective nationals with each other designed to create spheres of influence or to provide for the enjoyment of mutually exclusive opportunities in designated parts of Chinese territory.

ARTICLE 5,

China agrees that, throughout the whole of the railways in China, she will not exercise or permit unfair discrimination of any kind. In particular there shall be no discrimination whatever, direct or indirect, in respect of charges or of facilities on the ground of the nationality of passengers or the countries from which or to which they are proceeding, or the orgin or ownership of goods or the country from which or to which they are consigned, or the nationality or ownership of the ship or other means of conveying such passengers or goods before or after their transport on the Chinese railways.

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