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Colony or in any way (e.g. by the payment of blackmail in the

guise of strike pay, by the reinstatement of strikers, or the

payment of compensation for loss) which would enable the

Government of Canton, the Strike Committee, or the Red

Russians, to proclaim the settlement as a success.

Moreover

such an ending would constitute a direct incitement to the

renewal of anti-British agitation at Shanghai and in other

places.

Canton grievances.

In a communique to the Press (copy sent

home with my secret despatch of the 28th of January) the

(?) Commissary of Foreign Affairs has recently declared that

the strike was begun by workers inthe Colony primarily as a

protest against the British Government for the shooting which

occurred on the 23rd of June at Canton, and not for economic

reasons.

Neither the strike nor the boycott which has followed

it have been caused by any actions or neglect by the Colonial

Government or the inhabitants of the Colony. Hongkong is in

advance of China in legislation for the benefit of labourers.

Economically workmen in the Colony are better off than in

China.

It is decidedly my intention to exert my personal

influence to induce the Government of Canton to turn for help

to Britain rather than to Russia. In this connection I

would refer you to my despatch of the 24th of December (secret)

my despatch paragraph 3 of 8th January (secret) paragraph 2, and my

despatch of 20th January (secret) paragraph 10. We are however

decidedly against an annual payment to Canton from Boxer funds.

In the allocation of Boxer funds in our opinion no regard

should be had to the Canton situation, and Kuang Tung should

not receive any payment while the boycott lasts.

Delegations should not, in our opinion, proceed

to

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