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than the recent happenings in South China, and particularly the schoolboy strike, I find it difficult to conceive. Allow me, there- fore, to congratulate you warmly on the attitude taken up and maintained throughout these troubles by the under- graduates of the Hongkong University. It has been a very great encouragement to those who desire to see the cause of higher learning advanced, for it shows that you in incipient manhood have already put boyish folly behind you, that you have the courage of your convictions, and that you are able to see through the specious fallacies of Bolshevik propaganda. (Applause.) Many centuries ago your own fellow countrymen Confucius and Mencius saw far more deeply into the social and ethical needs of China than any Bolshevik emissary of to-day, and I commend to you a close study of the Chinese classics as a very wholesome antidote to much poisonous doctrine which is being spread abroad at the present time from interested motives by men who have at heart neither the good of China nor of mankind at large. (Applause.)

Co-operation.

This is Armistice Day, and it is well for us to remember that in the Great War Britain and China espoused the same cause. (Applause.) As for Hongkong, not only during the Great War but for many decades before and in all the years that have fol. lowed it, this Colony has been animated by feelings of the most sincere friendship towards China at large and the Cantonese in particular. (Hear, hear.) The present situation from which Canton and Hongkong alike suffer is in no way due to any act either of commission or omission by the Government or the people of Hongkong; therefore, I hope that on this auspicious day those now in authority at Canton will reconsider their position and again hold out the hand of friendship to Hongkong. If they do. we shall clasp it warmly and endeavour by cordial co-operation to remedy the harm which has been done by the boycott.

Gentlemen, I look forward to seeing much of you during the coming months and to acquainting myself with your studies and learning something of your aims and aspirations, and I desire to assure you of my sympathy and wholehearted support in all that tends to advance the welfare of this University. applause.)

(Loud

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I appreciate your invitation to visit Hongkong, and entirely agree with your suggestion that we should meet as soon as pos sible. But it is unfortunately difficult, almost physically im- possible for me to leave Canton at present-even Dr. Tso during his short stay here has seen enough to bear me out-on account of our exertions to do as much for the people as we can as quickly as possible. However, I have oftener complained to my Hongkong friends, Mr. Fletcher for instance, that they do not visit Canton often enough. Many difficulties can be removed by mutual understanding. I trust it will be possible, even before I get down to Hongkong, for you to pay a visit here. Your old haunts and associations must make an irresistible appeal

Yours sincerely,

to you.

ENCLOSURE 5 IN NO. 2.

C. C. Wu.

Translation of a draft despatch prepared by Mr. Fu Peng-sheung and revised by Dr. C. C. Wu.

The present strike of workmen of Canton and Hongkong, lead- ing to a cessation of commerce, is indeed an unfortunate affair.

I have always valued peace, and earnestly hope that this matter may find an early solution. I have already appointed repre- sentatives to go to Canton to discuss methods of solution with representatives of labouring and commercial circles. Now this Government from a desire to accelerate an early settlement pro- poses to request your honourable Government to mediate and to select officers to take part in the conference.

You are an ardent lover of peace and I think that you will certainly approve this proposal. I hope for the favour of an early intimation as to your view.

I am now appointing in addition Government officials, as pleni- potentiary delegates. I have the honour so to inform you."

To the Canton Provisional Government.

=

DEAR MR. CLEMENTI,

Enclosure 4 in No. 2.

Canton, 26th November, 1925.

I thank you for the letter which Dr. Tso brought. While, as you say, we have not met before, we are not strangers to each other, especially as your reputation as a scholar, of the East as of the West, has long ago reached me. Mentioning your uncle, Mr. Cecil Clementi Smith, if I remember correctly, I had the pleasure of seeing him in company with my late father in London in 1909.

ENCLOSURE 6 In No. 2.

Translation of counter draft.

The present strike, with the consequent stoppage of trade and the hindrance of free communications between Canton and Hongkong, is causing hardship to the peoples of the two places. This is indeed a matter for commiseration. A policy of peace being my constant aim, I very much hope that this matter will be settled at an early date; and deferring to the request of the people, I have already appointed Sir Paul Chater, a member of

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our Executive Council; Mr. Chow Shou-son and Mr. R. H. Kotewall, Chinese representatives on the Legislative Council; and Mr. Bernard, Head of Messrs. Jardine, Matheson & Co., to be responsible representatives of Hongkong for the purpose of negotiating with the representatives of Canton for a settlement. Now, this Government being desirous of relieving the sufferings of the people and hastening the date of settlement, proposes to appoint, in addition, Mr. Fletcher, Colonial Secretary; Mr. Kemp, Attorney General; and Mr. Tratman, Secretary for Chinese Affairs; who, with the aforementioned four representa- tives, will be the plenipotentiary delegates for Hongkong. It is proper to request the Canton Government also to appoint, for similar reasons, three officials of equal standing, in addition to the four elected representatives of Labour and Commerce, to be pleni- potentiary delegates for Canton, so that negotiations may be opened. I am sure that the Canton Government will subscribe to this sentiment. I request you to be good enough to transmit this idea to the Canton Government, and to ask for a reply.

ENCLOSURE 7 IN NO. 2.

Government House, Hongkong, 15th December, 1925.

DEAR MR. WONG TSING-WAI,

It has given me much pleasure to receive your letter of the 5th December and I now take the opportunity of a projected visit by Dr. To Ying-kwan to Canton to write in acknowledgment of your cordial message.

I feel that I cannot be mistaken in my belief that your Govern- ment sincerely reciprocates the earnest desire of my Government' that a speedy end should be put to the unfortunate misunder- standing which has for some months existed between Hongkong and Canton. I use the word "misunderstanding " advisedly, as it seems to me that it is impossible definitely to lay one's finger upon any single point which could legitimately be regarded as an obstacle to an immediate settlement.

This misunderstanding would, I have little doubt, be quickly removed if only explanations were exchanged in person between responsible officials of Canton and Hongkong, and I can think of no better plan than that the Canton Government should depute a member of its Executive Committee to visit Hongkong, as the guest of my Government, to discuss the situation in an informal and friendly manner with myself and my advisers. I should thus obtain first-hand information of the views of your Government and I would then in my turn arrange that the Colonial Secretary of Hongkong should accompany the representative of your Government back to Canton for the purpose of a similar exchange of views with yourself and your colleagues.

Such a preliminary exploration of the ground at informal meetings between representatives of our two Governments would enable us to understand exactly each others position and might

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even result in complete agreement between us. But, if not, the effect of such conversations would at least be to narrow down to a definite point any matter regarding which there might be a substantial difference of opinion and thereby greatly to facilitate the work of any formal and official conference.

YOUR EXCELLENCY,

ENCLOSURE 8 IN NO. 2.

I am, &c.,

C. CLEMENTI.

Canton, December 19th, 1925.

In response to your very cordial letter of the 15th December, in which you suggested an informal exchange of views between responsible members of the two Governments in order to find a solution of the present situation, I wish to inform Your Excellency that my Government has requested Mr. Tse Vung Soong, a member of the Executive Committee of the Government, to call on Your Excellency to ascertain and receive any suggestion you may have which would help in attaining the desired ends, and to exchange views thereon.

I hope Your Excellency will appreciate that the misunderstand- ing referred to in your letter is one into which large masses of people are involved on both sides, and that a broad view is there- fore necessary in order that the two Governments might be able to use their best efforts in the restoration of normalcy.

We look forward to further exchange of views upon the arrival

of your representative referred to in your letter.

I am, &c.,

His Excellency Cecil Clementi, Hongkong.

Enclosure 9 in No. 2.

WONG CHINg Wei,

Record of an interview between His Excellency the Governor and Mr. T. V. Sung (Sung Tsz-man), Finance Commissioner to the Canton National Government, at Government House on Saturday, 19th December, 1925..

There were also present:-

The Colonial Secretary (Mr. A. G. M. Fletcher, C.M.G.,

The Attorney-General (Mr. J. H. Kemp, K.C.).

C.B.E.).

The Secretary for Chinese Affairs (Mr. E. R. Hallifax, C.M.G., C.B.E.). Mr. D. W. Tratman.

After mutual expressions of an earnest desire for a settlement between Canton and Hongkong, Mr. Sung asked His Excellency what proposals he had to make, to which the latter replied that

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