COPY.

40

24

Enclosure No. 1.

CONFIDENTIAL.

Statement made to Sir Shouson Chow by Mr. Ho Wah-tang, Compradore of Messrs. Loxley & Co., and at one time a Director of the Tung Wah Hospital and of the Po Leung Kuk, Hong Kong.

I was a passenger by the s.s. "Taishan" from Canton to Hong Kong on Saturday the 19th February. The boat was full of

members of the Seamen's Union and their families as well as of

some school-boys, who all came down to Hong Kong for a special

celebration on board the steamer upon arrival in Hong Kong.

There were theatrical performances on board as well as speech-

making. The saloon passengers were invited to participate in

the celebrations.

On the passage down, one man who was apparently an

important official of the Seamen's Union, said among other

things that the firmness shown by Eugene Chen in his negotiatin

tions with Mr. O'Malley had been made possible by the strong

support that the labour unions, particularly the Seamen's Union, had been affording him; that labour need not be afraid

of Great Britain because of the enhanced prestige and increased

strength it has gained during the last two years; and that there

was no fear of war with Great Britain in view of the fact that

Mr. Ramsay Macdonald had been in direct communication with

members of the Nationalist Government, and had shown them such

sympathy as indicated that he and his party would be opposed to any strong measures that might be adopted by Great Britain to-

wards the Nationalist Government.

sd. Shouson Chow.

23rd February, 1927.

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