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Canton Union, which made use of an incident occurring on
the Yangtsze, (where it had already been satisfactorily
settled) to levy blackmail on the Company. It was believed,
with good reason, that the action of the Union had the active
support of the South West Political Council which hoped, by
supporting the Canton Union to embarrass Chiang Kai Shek.
The boycott lasted for fifteen months and cost the Company,
apart from indirect losses estimated at $2,700,000 for freight
alone, $180,000 paid to the Seamen's Union, and a further
$270,000 compensation to merchants in respect of cargo damaged
or undelivered by reason of the boycott.
6.
In this instance, the Company, being aware of the strength of their case, resisted and were ultimately (defeated.
In numerous other cases however the owners have preferred to
pay the blackmail demanded rather than run the risk of greater
loss. A fruitful source of incidents has been the active
support given by the Union to smugglers of unmanifested cargo
and opium. In some such cases ship's officers have actually
been intimidated by emissaries of the Union armed with
revolvers.
7. For these reasons I am satisfied that to grant
permission to the Union to extend its operations to Hong Kong
would mean serious trouble in the not distant future. As
matters stand, it is difficult, if not impossible, for them
to extend their influence over the whole China Coast, and
concerted action against the larger shipping companies, such
as was taken in 1922 and 1925, is unlikely to recur. I do
not wish to be understood as suggesting that Chinese seamen
should be prevented from combining in order to further their
own legitimate interests, but as asserting my conviction
that the Union in its present form does not satisfy this
requirement, and that its main objects are political graft
and blackmail.