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76

Enclo. No. 1.

Hankow wants Canton and Chang Tso-lin may have

real designs in that direction.

4. Since writing the above I have received

an interesting memorandum (copy enclosed) of an

interview between an emissary from General Li Chai-

sum and the two Chinese Members of Legislative

Council, which supports in certain directions the

sketch I have just made of Canton politics. I am

glad to say that General Li Chai-sum's friendliness

towards this Colony seems to me genuine, and it is

greatly to be regretted that he is not in a position

to override the senseless animosity of other

elements in Canton.

5.

All negotiations by the Hong Kong, Canton

and Macao Steamboat Company for the removal of the

boycott of the British river-steamers have hitherto

failed and although the Canton police, when in sufficient force, prevent actual violence (such as

tarring of boycott-breaking passengers) they will not drive off the Seamen's Union's pickets. The vessels, therefore, get practically no passangers and very little cargo except live fish, which is

handled by a Union too truculent even for the

Seamen's Union. It is in fact quite clear that the

Seamen's Union intends to maintain the boycott, if it can, until the Company surrenders unconditionally. Realising this, the managers of the main Company (the Hong Kong, Canton and Macao Steamboat Company) propose to recommend to the directors a stronger line of action. In the first place they intend to claim from the contractor (see my secret despatch

of the

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