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regulars who arrived at Taipo in British territory were,

very properly, rounded up and sent back over the border,

but the bandits whose leaders are known and named, and who

also arrived at Tipo, were allowed to take the train to

Yaumati, which I understand is near the British terminus of

the Canton Kowloon railway and is in the centre of the

Colony of Hong Kong, aparently without any interference

whatsoever.

5.

The Assistent Superintendent of Police

concludes his statement with the following words: "It is

difficult to understand the reasons that prompted Tong Fuk-

chi and others to undertake this wild-cat adventure which,

by reason of its sheer futility, is one of little political significance, savouring more of banditry than anything else. Indeed to call Wong Fuk-chi and his followers "rebels" instead of "bandits" is a distinction without a difference".

6.

There is, however, no indication in Your

Excellency's covering despatch that steps are being taken to deal with these bandits, who murdered the Canton Government troops. Your Excellency is of course aware that those particular troops were under the command of General Wu Him at Waichow, the military officer in charge of the Bias Bay district, to whom we look for action age inst the shipping pirates. It is hardly surprising that his efforts in that direction have been somewhat lukewarm.

7.

It will also interest Your Excellency to know that according to fairly reliable information which I have received, the notorious brigand chief Lau Lun, who was recently captured in Hong Kong, but obtained his release and escaped on payment of $10,000 bail, is now back in his old haunt, a place called To Kau near Tungkoon. He is terrorizing the neighbourhood and is extorting $2 a mow from

the villagers for permission to reap their harvests. When

he

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