RECEIVED

25 FEB 1927

TELEGRAM from the Governor of Hong Kong the Secretary

of State for the Colonies.

Dated 24th February 1927.

24

(Received Colonial Office 11.6 p.m. 24th February 1927)

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2 MAR 192

Trade

y telegram of 16th February situation Canton.

Support of merchants against labour extremists has

extended to forcible removal of pickets from 800 shops

but communists are preparing for a strong counter-attack

and business continues on a hand to mouth basis with

no solid confidence.

Seamen's Union is working for a fresh strike

of Chinese crews nominal casus belli being punishment

in Hong Kong Police Courts of three Union delegates for

distributing violently anti-British literature ona ship

in the harbour. Real object is to start fresh general

attack on British interests in China in liason with

Shanghai agitators for this reason cargo requiring

to be warehoused and not immediately distributable

beyond reach of the agitators is avoiding British

shipping 60% of silk Filatures in Canton area reported

last

to be closing owing to losses this year and shortage in

new crop may be anticipated.

Hong Kong. Prospect of arrival of large bodies

of troops has given fillip to preserved food, timber and

metal trades, but commerce in general shares Canton's

misgivings.Labour Unions are being stirred up by head-

quarters in Canton to cooperate by general strike in the

above mentioned fresh outbreak. Maintenance of services

organisation is being tuned up but at the moment the

situation though critical well in hand.

telegram of the 23rd.

Unnumbered

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