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PUBLIC RECORD OFFICE

Reference :-

EPERFIC.O.882/11

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO

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Consul of this conversation, and on my return I reported it and all that had transpired to the Consul-General, who agreed that he would get into immediate touch with Mr. Wu.

During my long tour through the city and on the voyage up and down I took careful note of the conditions prevailing. The city seemed to me to be in a very prosperous state." There was a large number of ships in the harbour, the shops were bright and prosperous looking, and they and the streets generally were far cleaner than they had been on the occasion of my last visit some three years ago. I have little doubt that the Canton Authorities are right in their frank statement that, although the inconvenience was at first very great and is still not inconsider- able, Canton is learning to do without Hongkong. Hongkong is undoubtedly losing trades which it will find it very hard to regain, although, when normal conditions are restored, Hong- kong is bound to have its full share in Canton's prosperity, and given peace in the province, the trade of both places should expand enormously. Mr. Sung informs me that in the last few months the revenue has automatically increased from $1,200,000 to over $4,000,000 merely because the people have been at peace, and it continues to grow. I saw a number of soldiers drilling in very good formation at the parade ground at the foot of the White Cloud Mountains, and I was informed that all troops were now outside the city. The strikers' pickets wear neat dark blue uniforms with leather belts. As regards the members of the Council, I feel that they are quite sincere in their desire for a settlement, with the exception of perhaps Mr. Wong Ching-wai, who, I imagine, is at heart irreconcilably anti-foreign. Mr. Wu wishes to settle, but he is doing his utmost to get the settlement in the form of a defeat and surrender of Hongkong. I think that the Consul-General is wrong in his estimate of Mr. Sung, who This in my opinion exercises very considerable influence. opinion was confirmed by conversations in Shameen. Mr. Wong Cheung-kuk took no part in the discussion, and Mr. Wong Ching-wai remained largely in the background as he knows no English and most of the conversations were not interpreted.' Mr. Wong Ching-wai is, I understand, thirty-seven or thirty- eight years of age and he looks hardly thirty. The members of the Council are all young men, Mr. Wu, the oldest, being thirty-nine, and with the exception of Mr. Wu, they gave me the impression of being somewhat immature politicians, very anxious to learn, who would be grateful for friendly help and guidance.

December 23rd, 1925.

M. FLETCHER.

NOTE. I left Canton on the morning of the 23rd December in the U.S.S. Pampanga on the invitation of Captain Coustien and Commander Dugger, U.S.N.

C3165/26S.

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No. 4.

The Governor of Hongkong to the Secretary of State for the Colonics.

Secret.

SIR,

(Received 8th February, 1926.)

Government House, Hongkong, 6th January, 1926.

In continuation of my secret despatch of the 30th December.* I have the honour to inform you that the eight elected repre- sentatives of the longkong Chinese merchants returned from Canton on the 2nd January, having completely failed in their mission. I attach a letter and memorandum written by one of these representatives, Mr. Lo Man-kam, head of the firm of Messrs. Lo & Lo, Solicitors, describing this abortive visit, from which you will see that, owing chiefly to the obstructive tactics of Dr. C. C. Wu, the eight Hongkong merchants were not able even to begin negotiations with the Canton Strike Committee.

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""

2. It is very interesting to compare Mr. Lo's memorandum with Mr. Fletcher's report, a copy of which was enclosed in my Mr. Fletcher carried secret despatch of the 24th December.† away from his interviews with the Canton Council of Government the impression that the only matter for settlement was the amount of compensation to be paid by the Chinese merchants of Hong- kong and Canton to the Strike Committee in order to end the boycott, and that the Canton Government would use its influence to prevent the Strike Committee from bringing up any other matter for discussion. But Mr. Lo's memorandum shows that, so far from this being the case, the Canton Government through Dr. C. C. Wu used its influence to obstruct any negotiation on these lines and defined the issue not in terms of a bargain for between Chinese merchants and Chinese compensation labourers, but as a political and patriotic contest with Great Britain in general and the Hongkong Government in particular. 3. If that is the position, then evidently no arrangement by compromise will be possible. I had thought that a majority of members in the Canton Council of Government sincerely desired a settlement, that the Canton officials were, however, for political reasons, unable to deal drastically with the strike pickets and that they, therefore, desired to use Hongkong money to buy off and so disband the boycott organisation, after which normal friendly relations between Hongkong and Canton could be resumed. The on the 19th December visit of Mr. Sung Tsz-man to me strengthened me in this opinion, as I could not otherwise explain his mission to Hongkong. I knew from Dr. To Ying-kwan that my letter of the 15th December to Mr. Wong Tsing-wai (vide enclosure No. 7 in my secret despatch of 23rd Decembert) had caused much searching of heart among the members of the Canton Council of Government, who discussed the matter for three hours and then drafted an evasive answer which Mr. Wong I attach a Tsing-wai actually sent to me by the hand of Dr. To. translation of this letter. It was only at the eleventh hour, after

; No. 2. *C 2804:26; not printed,

+ No. 3.

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