# K 17
3.-POLITICAL.
The political situation assumed a very serious aspect early in 1927 when anti-foreign, and particularly anti-British propaganda, disseminated by Bolshevik Agents made itself felt throughout China, particularly in the Yang Tse region and also in Canton. As a result of the strengthening of the Naval and Military forces in Hong Kong as well as in Central China, peace was maintained and the local situation improved very considerably as the year advanced. Early in the year, several Labour Unions, which had voluntarily closed during the 1925 boycott but had not been officially closed, re-opened and renewed their political activities in the Colony. As a result, labour troubles began again, but these were successfully checked by the closing of the two principal political unions, i.e., the Hong Kong General Labour Union and the Seamen's Union, whose seditious activities in Hong Kong have been notorious for some years. Since the closing of these two Unions, a much more healthy atmosphere has prevailed in labour circles, and strikes have been few and far between. There was a slight recrudescence of illegal labour activity at the end of the year, following on the short-lived Communist success in Canton on the 10th December. After the successful coup carried out against Marshal Li Chai Sam's adherents during his temporary absence in Shanghai, General Cheung Fat Fui, who took over control of Canton, was unable to maintain order in that city, and for two days it was in the hands of the Reds, who wrought very considerable damage and murdered and looted extensively. They were eventually driven out by a mixed force in which General Li Fuk Lam figured conspicuously. Within a short time, Marshal Li recovered control, and General Cheung and his followers were compelled to retire in disgrace. Two days after the Canton outbreak, a few posters exhorting the people to rise and assert themselves against the Imperialists were found in the streets, and a mild attempt was made to interfere with the Low Level Tram Service. Otherwise, the Canton coup failed to elicit any response locally.
4.-INSTITUTIONS.
During the year, two new institutions connected with the Police came into existence. The Hong Kong Police Reserve, which was disbanded in 1919, was re-established on a permanent basis, and fresh legislation was introduced to effect the change. Since 1925, the Special Constables had been continuously enrolled; it was therefore considered advisable to call up and reorganize as an auxiliary force those who were anxious to become more familiar with and efficient in Police work. A Chinese Company was first formed, which numbered 70 at the end of the year, and later an Indian Company of roughly 50. Flying Squad (Motorcyclists), who have continued to render most valuable service to the Police and the community, were embodied in the Reserve, and finally, at the close of the year, a Sharpshooters Company (International) was formed, thus bringing up the Reserve to close on 200. The Reserve is not large, but all its members are keen, and all sections have already rendered most useful service.
The