9.

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non-members, who all three were strongly in favour

of proscription, I took the votes of members for and against proscription. All voted in favour of

proscription except Mr. D.G.M. Bernard of Messrs. Jardine, Matheson and Company, who was of the opinion

that the step might lead to fresh disorganization of

the now recovering trade of the Colony and would not

strike at the vitals of this hostile Union, but would

merely irritate it by "treading on its toes".

14. I am quite aware that the closure of the

Hong Kong Union or Branch may have very serious con- sequences, if not now, perhaps later when the National-

ist party is reunited by fresh victories. But I am convinced, on the other hand, that firmess in a just

cause, as exemplified in the case of the s.s."Lungshan

Secret holl (see my special despatch of the 24th May), is the only

method by which British trade and British interests

can be maintained in China. This is a just cause. The Chinese Seamen's Union is a tool of Moscow, and in ejecting its the Government of this Colony does but follow the lead of His Majesty's Government and of

China herself.

15. The order issued by the Governor-in-Council

declares the Chinese Seamen's Union unlawful, without

special reference to the status of the Hong Kong

establishment as a branch of a wider organization.

The signboard of the premises in Hong Kong bore the

full title, and only the full title. There was no addition, such as "Branch", although the circular professing allegiance to Hankow carried this limitation.

The name on the signboard was appropriate to the order:

and

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