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APPENDIX I.

Governor, Hong Kong, to Secretary of State for the Colonies.

(0.0., No. C. 15383.) Sir,

Hong Kong, June 30, 1926. I HAVE the honour to invite your attention to my secret despatch of the by Rias Bay 20th January last, concerning the capture of steamship "Tung Chow " pirates, and particularly to the sixth paragraph, from which you will see that on the 9th January Mr. Fu Peng-sheung, then Commissioner of Foreign Affairs at Canton, wrote that this outrage "should be dealt with by the Nationalist Government them. selves, who would certainly be able to exterminate these pirates. Moreover, they had already begun to move in the matter, and there was no need for foreign assistance."

2. Not only has no attempt whatever been made from that day to this by the Canton Government to exterminate the Bias Bay pirates, but, since the seizure of steamship "Tung Chow," three more piracies have been committed by the Bias Bay gang. I attach a report (Enclosure No. 11 by Mr. T. II. King, deputy superintendent No Man's Land," in which of police, describing these piracies. Bias Bay in a sort of the writ of the Canton Government does not run, and which is dominated by pirates and brigands from the large village of Fan Lo Kong at the north-east corner of the bay.

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3. In view of the fact that a French vessel, the steamship "Jade," was captured by Bias Bay pirates in February last, I was fortunate enough to secure the co-operation of the French naval commander-in-chief, Admiral Basire, with the British naval commander-in-chief, Admiral Sir E. Alexander-Sinclair, in a scheme whereby it is now arranged that, as a matter of routine, all British and French men-of-war on their way up and down the China coast between Hong Kong and Shanghai put into Bias Bay and steam round it, and, further, that they carry out their gunnery and torpedo exercises, as often as occasion permits, in this bay. The object of this scheme is that the pirac should so frequently see men-of-war in and about Bias Bay that they may be forced to consider it a hazardous place from which to organise piracies or to which to bring vessels which they have seized. I have endeavoured to interest the United States navy in this scheme through the United States Consul-general at Hong Kong and through the Counsellor of the United States Legation at Peking, who was recently on a visit to Hong Kong. But I have not yet had an opportunity of discussing the matter with Admiral Williams, the United States naval commander-in-chief in these waters, and I do not know what view he takes of the proposal.

4. 1 regard it, however, as most important that these Bias Bay pirates should not be allowed to commit any further outrage with impunity. They have a long record of successful crime behind them, and I attach a précis (Enclosure No. 2) of piracies committed by them since 1921. The pirates, I may say, are led by daring men with a good knowledge and experience of ocean-going ships. I therefore took advantage of the recent presence in Hong Kong of Mr. O'Malley, Counsellor of His Majesty's Legation at Peking, to arrange for a visit of inspection to Bias Bay on the 16th June in H.M.S."Despatch." Our party, in addition to Mr. O'Malley and myself, cousisted of Commodore Stirling, Colonel Montague-Bates (at present officer commanding the troops in Hong Kong), Colonel Coates, Mr. W. T. Southorn (Colonial Secretary) and several military and naval officers. We had also with us Captain H. F. Bloxham, acting assistant-superintendent of police, and Lieutenant-Commander Ingham, Royal navy, who had both participated in the raid made upon the Bias Bay pirates in co-operation with the Chinese authorities in January 1925, and described in Captain Bloxham's report, which forms an enclosure in my predecessor's despatch No. 81 of the 3rd March, 1925.*

5. We made a careful inspection of Bias Bay, noting especially the anchorage to which the pirates take captured vessels, and viewing the village of Fan Lo Kong from the waters of the inlet on which it is situated. Consequent on this inspection, I have received the attached letters (Enclosures Nos. 3 and 4), dated the 24th and 25th instant, from Commodore Stirling and Colonel Montague-Bates respectively, indicating the nature of the operations which would be necessary, if a punitive expedition were to be undertaken. It is clear from these letters that prior authority from the Admiralty and War Office will be needed, and I have the honour to suggest that the consent of those

• Not reproduced.

Departments and also of the Foreign Office should be obtained to action on the following lines :—

When next a piracy in Bias Bay is reported, it is proposed that two companies of a British regiment should be immediately despatched with such naval escort as may be available in accordance with a plan which is being prepared by the naval and military authorities. The expedition would proceed at once to the anchorage in Bias Bay, where pirated ships are moored, and would there land and endeavour to waylay the pirates while removing their loot. The troops would also search the pirate villages, and, if necessary, destroy them.

6. Such a punitive expedition would, of course, be a warlike operation undertaken in Chinese waters and on Chinese soil. If, therefore, the co-operation of a Chinese cruiser, should one happen to be in or near Hong Kong at the time, could be obtained, this would be a great advantage. But it is not unlikely that no Chinese cruiser might be at hand, and the essence of a panitive expedition into Bias Bay is that it should follow immediately upon the report of a piracy. In such case, having regard to the fact that the Bias Bay area is outside the effective control of any administration in Canton, and having regard also to the numerous depredations committed by Bias Bay pirates in recent years, the de facto Canton Government when presented with the fuit accompli might, of course, loudly protest against it as an act of war carried out by British arined forces in Kwangtung, but would, I believe, secretly rejoice at the extermination of this nest of pirates, and might even be encouraged thereafter to exert its own authority by stationing troops in this area aud driving out the brigands who infest it. The result, as a whole, would I feel sure be salutary, and would not be misunderstood by the Chinese people either in Canton or in Hong Kong. It would certainly be welcomed by the Cantonese seafaring folk, and it would serve to vindicate British prestige.

7. I have shown this despatch in draft to Commodore Stirling and to Colonel Montague-Bates, who concur in the practicability of the proposed punitive expedition. Accordingly I have the honour to request that, if these recommendations meet with the approval of His Majesty's Government, the necessary instructions may be sent to llong Kong by telegram.

8. I have sent a copy of this despatch to His Majesty's Minister at Peking aud Ilis Majesty's consul-general at Canton.

0. I enclose a chart showing Bias Bay and its contiguity to Hong Kong waters, aud I have indicated on the chart the anchorage to which pirates have in the past taken the vessels which they have seized.

I have, &c.

Enclosure No. 1

C. CLEMENTI, Governor.

Précis of Piracies committed by Bias Bay Pirates, 1926

1. Steamship "Jade."-Shun Cheung Steamship Company, 6, Connaught Road, Central, 2nd floor, running between Haiphong, Kwong Chau Wan and Hong Kong. Was pirated on the 8th February, 1926, eight hours out from Kwong Chau Wan on her way to Hong Kong. She is a cargo ship, and was carrying 100 tous general cargo and bullion valued 82,900 dollars. There were ten third-class passengers. Seven of these were the pirates. They took the ship to Bias Bay and arrived off Fan Lo Kong at 10 A.M, on the 10th February. The ship was taken right up the creek, where it was in 3 fathoms of water and about 500 yards from the shore. The pirates called two sampans, which took off all the pirates and the bullion. The pirates boarded the ship at Kwong Chau Wan.

2. Steamship" Hsin Kong."-China Merchants' Steam Navigation Company. Was pirated on the journey from Shanghai to Canton, when she was near Swatow on the 25th March, 1926. The pirates took the ship to Bias Bay and transferred ashore cargo and loot from the passengers by means of a boat which was lying in readiness at an arranged spot. ("South China Morning Post," of the 1st April, 1926.) (Hong Kong police have no report or details of this piracy.)

• Not reproduced-in possession of Colonial Office.

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