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Tq.

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case of the Douglas Steamship Company which, from August 1925 (shortly after the strike) had manned its vessels with non-Union crews. In March last

this Company was threatened with a boycott by the Canton Seamen's Union working together with the Transport Union at Swatow, unless the non-Union crews were dismissed. The Company surrendered un- conditionally, and as from the 1st April last en- gaged crews supplied by the Seamen's Union. It is not too much to say that during the early months of this year the British shipping firms in South China had been frightened into abject submission to the tyranny of the Chinese Seamen's Union. It has also been necessary recently to prosecute five members of the Seamen's Union in Hong Kong for possession of seditious documents. Of these one man was sentenced to six months' imprisonment with hard labour, another to three months' imprisonment with hard labour, two were bound over in $100 each and the fifth discharged.

7. Meanwhile So Shiu-cheng had transferred himself to Hankow in February, 1927, with the rest of the Nationalist Government, and its Russian advisers.

But the last few weeks have seen great changes in political planks and platforms in China, and the slogan "Down with British imperialism" has yielded pride of place to "Down with Moscow and Communism!" During April last Marshal Tseung Kai-shek (2) carried out his anti-Communist coup, which split Chinese Nationalism into the Nanking and the Hankow cliques. Canton, under General Li Chai-sum, followed the lead of Marshal Tseung and declared itself anti-

Communist

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