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Hong Kong General Labour Union in 1927, it is known

rather as a Criminal than as a Political Society.

As a result of recent investigations ample proof has

been obtained that its income was derived from

blackmail levied on singing girls and others and that methods of intimidation not stopping short of murder

were employed freely to terrorise employers and

employees who did not belong to the Union; while at the same time by means of a prohibitive entrance fee and restriction of membership an attempt was being made to limit the number of persons qualified for employment in tea-houses. As a result of these encuiries the

Union has now been declared an unlawful Society.

9. Miss Tobin whose capture and detention by bandits was referred to in my last despatch has now been released on payment, apparently by the Kuangsi Government, of a considerable ransom.

10. Communist activities in uangtung and the neighbouring provinces have been less marked of late and there seems to be no reason to anticipate a serious outbreak in the near future. Tome anxiety is felt however regarding the situation in Kweichow province where two rival military commanders are believed to be on the brink of hostilities. Rumour is as usual busy in this connection with the possibility of friction between Marshal Tseung Kai-shek and the Kuangsi clique and it is not inconceivable that a conflict arising in this centre may spread far beyond the borders of Kweichow. More than that cannot be said at present.

11.

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