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to evade the general tendency by recruiting under various designations military police to replace the

troops which they have disbanded.

5.

The persistent drought of the past few months has caused considerable distress in uangsi and to a lesser extent in Kuangtung. It is feared that brigandage may increase as a result.

6. The Society for the Severance of Economic Relations with Japan has recently become emboldened through the inaction of the Government and encouraged by the support of the Police Department, and its emissaries now venture to raid shops and seize goods alleged to be of Japanese origin. Many of the City Merchants of Canton have sent their stocks into the country to escape confiscation and blackmail.

Meanwhile the discovery of a syndicate

existing within the ranks of the boycott committee for the introduction into Canton of Japanese goods has caused a considerable sensation. Five persons are reported to have been executed by shooting, of whom two were police officers seconded by their department for service with the committee; while amongst those still held for enquiries is the representative of the Associated Union of Jabour Unions.

7. In this connection it is interesting to note a report in the local press that the number of labour Unions which are permitted to function in Canton is now no more than thirty-three claiming a total membership of one hundred thousand.

The Mechanics Union with a

nominal membership of over forty thousand heads the list; of the balance the Seamen's Union claims 13,000

and

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