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make the problem of keeping control over the Chinese population

of Hong Kong much more difficult and complicated. The old

sense of loyalty and implicit obedience to authority among the

Chinese weakened almost to vanishing point in the years immediately following the Revolution, while the new half-

understood and ill-digested teachings of the revolutionary

leaders made the Hong Kong community restless and very liable to exploitation by republican politicians from Canton. Nevertheless it has throughout been possible to hold together in this Colony a body of loyal Chinese citizens, who could be depended upon for information and advice, and who on occasion

- and especially during the last three years have been

willing to come out into the open and give the Hong Kong

Government their active assistance. This result has, however,

only been achieved by very careful handling of the Chinese

merchants, who are by nature timid and reluctant openly to

espouse any cause until its success has been assured. The work done during the Seamens' Strike of 1922 - which proved

a valuable object-lesson from the very fact that the result

was a"victory"for the Seamen bore fruit in 1925, when the

Chinese merchants of Hong Kong rallied round the Government

at the outbreak of the anti-British boycott. It is now a

justifiable hope that such a nucleus of active assistance

has been formed as to prevent the possibility of the Chinese

community again being stampeded as it was in 1922 by want

of leadership.

3.

The principal agent, through whom the Hong Kong

Government controls the Chinese community, is the Secretary

for Chinese Affairs; and the chief agencies through which this

officer works, and with which he is in the closest possible

touch, are as follows:-

(a)

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(a) His most important co-adjutors should always be the two

Chinese members of the Legislative Council, both

nominated by the Governor, and both ex officio members

of the numerous Chinese committees connected with the

Secretariat for Chinese Affairs. The senior of the two

Chinese members of the Legislative Council is now also

a nominated member of the Executive Council; and the

Secretary for Chinese Affairs is always nominated to a

seat both in the Executive and the Legislative Councils.

(b) The District Watch Committee is a body without legal

status and of gradual growth, whose activities are

completely under Government control, but which is never-

theless truly representative of the Chinese community and possesses very great influence. A list of the members of

this committee appears on Page 47 of the Hong Kong Civil

Service List for 1927. The District Watch Committee

provides and controls a Police force of some 120 men,

known as the District Watch Force, which works in close

touch with the regular Police. On practically every

question of interest or importance to the Chinese

community the advice of the Committee is sought by the

Government. It is under the chairmanship of the Secretary

for Chinese Affairs, who controls its deliberations,

which are held in camera, the members being bound by an

oath of secrecy. Since my assumption of office as

Governor, an arrangement has been made whereby quarterly

meetings of this Committee are held at Goverment House

in camera under the chairmanship of the Governor himself

and with the Colonial Secretary in attendance. The object

is to enable the Governor to have first-hand information

concerning

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