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river-steamer companies have been entirely in the

hands of the bolshevized Canton Seamen's Union.

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5. As was to be expected, there has been constant

trouble ever since. The Union, flushed with its success, has exerted its authority in many ways. It has held Bolshevik celebrations on board the Company's steamers not only when at Canton, but even in Hong Kong until

the Hong Kong Government intervened. It has forced the

companies to provide, the crew in each steamer with "social

rooms", really meant to serve as communist "cells". It took a leading part in endeavouring to promote in Hong Kong a thoroughly Bolshevik celebration of the anniversary of the death of Dr. Sun Yat-sen. It staged a lightning

strike on the s.s. "Kinshan" on the 30th March and on

s.s. "Fatshan" yesterday. On both these occasions the

steamer in question had to be brought from Canton to

Hong Kong by, scratch naval and military crews. It

compelled Mr. Wu Hay-tong, owner of s.s. "Sai On" to

dismiss Captain Jenkins, the master of that vessel, in

February last, because he ordered his Chinese "boy", a

member of the Union, who had been grossly insubordinate,

not to be allowed again into the ship's saloon (see

enclosure No. 1 in my secret despatch of the 12th February

6. So long as the bolshevized Canton Government gave its support to the Canton Seamen's Union and tolerated

its unlawful activities, the Company was in no position

to extricate itself from the humiliation of complete

subjection to its own crews. But the coup d'état carried

out by General Li Chai-sum in Canton and elsewhere on Good Friday (14th April) against communists and bol- shevized labour leaders radically changed the situation. The Canton Seamen's Union was one of those against which

General Li

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