Sir,

ENCLOSURE NO. 2.

38

Colonial Secretary's Office,

Hong Kong, 5th August, 1927.

I am directed to acknowledge the receipt of

your letter of the 3rd August and to state that the

Agreement which your Company proposes to negotiate

with the Canton Seamen's Union would be, in the opinion

of this Government, both inimical to the best interests

of Hong Kong and detrimental to the Company itself.

I am, Sir,

Your obedient servant,

(Sa) W. T. SOUTHORN.

Colonial Secretary.

The Acting Secretary,

The Hong Kong, Canton & Macao Steamboat Co., Ltd.

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