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Enclo. No. 5.
no15
in 1)
71
carried out by the Kuomintang forces. The general state of unrest was increased by a futile raid on the hinterland of Bias Bay at the end of August by certain of General Chan Kwing-ming's former subordinates. A report by the Assistant Superintendent of Police, New Territories, on
the incident is enclosed.
10.
From a well-informed Chinese source I am
given the following explanation of recent incidents near Swatow. I am told that Generals Ip Ting and Ho Lung (both natives of Hunan province) are subordinates to General Cheung Fat-fui, concerning whom please see the 2nd paragraph of my despatch secret (2) of 1st September; that General Li Chai-sum and General Cheung Fat-fui have agreed to form a duumvirate in Kuang-tung; and that the Swatow area has been specially assigned to General Cheung, who is now taking possession of it by means of Generals Ip and Ho.
If this is true, then the duumvirate which is to rule the
Liang Kuang provinces would be representative of both
provinces, for General Li is a native of Kuang-hsi and
General Cheung a native of Kuang-tung.
11.
I am glad to be able to report that the
Strike of the Officers of the China Steam Navigation
Company's fleet has at last been settled amicably. Briefly
put, the terms are that the officers accept a reduction of 10% in wages and the Company maintains its refusal of compulsory arbitration on such matters. On the other hand, the Company has agreed to examine its working account
quarterly with a view to restoring the old rates of pay
as soon as profits warrant it. The Company is also
considering with the Guilds the question of establishing
a joint Conciliation Board. The net result of the struggle
is that reductions in staff amounting to about 10%, due to
actual severances of connection with the Company in the
course