19

that in this particular case there are no

contracts at all and if this is the case, it

is not necessary, in my opinion,to pursue

the point raised in 1925 (see His Majesty's

Consul General at Canton's despatch No. 39

of June 11, 1925, a copy of which was enclosed

in Mr. Palairet's despatch No. 441 of June 27,

1925) as to whether recoverable advances

amounted to a form of indentured labour.

5.

If this is so, the question resolves

itself into whether there is any substance in

the Chinese Government's allegations as to the

hardships suffered by prospective emigrants.

On this point I transmit to you herewith, for

your information, a copy or a letter, with

enclosures, which I have received from the

Colonial Office. You will observe that the

Governor of Hongkong is being asked whether he

considers that the powers of his Government in

this regard could usefully be strengthened in

any way.

6.

I shall be glad if you will communicate

the substance of this despatch to His Majesty's

Onsul

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