4

Enclo. No. 1.

A

penalties laid down for non-participation, the demonstration was a complete fiasco, presumably because the merchants were well aware that tariff Autonomy could not be snatched on

that date.

4.

I enclose an interesting appreciation of the Canton situation by a representative of General Ngai Pong-

144

Ling, concerning whom please see my secret despatches of

? improof

Enclo. No. 2.

f

Enclo. No. 3./

16th and 29th July You will observe that thes

representative gathered as far back as 19th August that the tariff autonomy programme would not materialise. Chau Tin-pong, Chairman of the Chamber of Commerce, mentioned in

this memorandum, is not the same man as the "president",

རྙ

Yu Chung-tong, whose arrest is recorded above. The opinion of Mr. Liang Shih-yi, to which reference is made, will be forwarded under cover of a separate despatch.

5.

The withdrawal of what may be by courtesy

called the Chinese "regular troops" from the British frontier has left the country side in the hands of the undisciplined Farmers' Corps, with the result that there has been further friction over the use of the path at Sha Tau-kok. I enclose a report of the incident.

6.

As I anticipated, the agreement between the

River-stes

eamer Companies and the Canton Seamen's Union was not regarded by the latter as an amicable settlement of differences between equals, but as a definite victory by

Labour over Capital and by Chinese over foreigners. I enclose translation of an extract from the Canton Bress

slation of regarding the jubilation of the victors.

7.

The tide of immigration has again turned

towards the Colony, the total surplus since 21st February

being

* hot praites. † Nos C 30001 /27 C [No.39] and C 30001127 D [No:

70

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