CANTON:

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are being discharged promptly and without hindrance in

Canton. Deliveries from godown are also being effected without any apparent difficulty. Although the River steamers are handling considerable local traffic, through

cargo as on coasters for the Yangtsze and the North are

lower owing to disturbances in the consuming areas.

"Emigration from Swatow is proceeding rapidly".

There are no developments to report with regard to the proposed New Union to comprise all employees of foreigners and foreign firms.

A firm trading the Native City of Canton reports that there is a restricted but continuous demand for British goods and much private expression of friendliness towards the British and desire to buy British goods.

It may conveniently be placed on record that as from mid-October, 1926, the Canton silk trade reverted to its usual channel and is now transacted

stead of through Shanghai.

through Hong Kong in-

(Sa) M.F. KEY.

HONG KONG, January 8th, 1927.

Secretary.

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