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بالسلسا

PUBLIC RECORD OFFICE

Reference :-

C.O.882/11

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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4. General conversation then ensued, and the following repre sents its substance:-

(a) When questioned. Mr. Foo admitted that it would be dangerous for the Canton authorities to allow the strike pickets to go too far. He also admitted that the Canton Government could, whenever it wished, put the strikers under control; but it did not want to be too hard on them because the movement was nation-wide, and was founded on patriotic grounds. The Government could end their activities when- ever it so wished, as its action in connexion with the recent Customs incident would prove.

(b) As regards the Customs incident, he volunteered the statement that Colonel Hayley Bell, the Commissioner of Customs in Canton, must have acted on instructions from the Inspector-General of Customs in Peking. He was sure that the Colonel could not have taken this action, simply because there was a boycott against British goods, for he was too much of a gentleman to do this. Mr. Foo protested at the time against the precipitate manner in which action was taken. It was his opinion that if the pickets had confined their activities to British goods the Customs incident would not have arisen.

(c) We said that as a result of the strike and boycott, the Hongkong Government would probably lodge a claim against the Canton Government for losses sustained by the Colony. Mr. Foo replied that as Great Britain had not recognised the Canton Government, Hongkong should send such claim to the Peking Government. His demeanour when making this answer suggested that the Canton Government was ready for this move from us.

(d) In answer to a question. Mr. Foo said that General Cheung Kai-shek had nothing to do with the matter of the strike or boycott, or in negotiations for a settlement: he merely concerned himself in military matters, in which his authority was almost supreme.

(c) Mr. Foo again raised the question of the "economic " terms, particularly the question of a loan from Hongkong. and we suggested that as we did not know the details he might accompany us back to Hongkong so that he could have We them at first hand from Ilis Excellency the Governor. made the suggestion because we had consulted' the Hon. Colonial Secretary and the Hon. Secretary for Chinese Affairs on the subject of this invitation before our departure for Macao. Mr. Foo said that although he would not mind going to Hongkong, he thought that just then no object would be gained by his so doing, as he could not add any- thing to what he had already said to us; and asshe knew so little of the details of the suggested loan, any remarks he might make in regard to it might give rise to misunderstand- ings which he was anxious to avoid. He said more than once that even if the Chinese merchants were still willing to pay the $300,000 which their delegates mentioned while in Canton,

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the amount would be too small to be of any practical use in settling the trouble, and therefore the proposed loan would seem to be the only solution. However, he would not like to drop the subject altogether, but would ask us to use our influence to get the amount increased. We answered that we could again talk the matter over in the morning.

() Mr. Foo expressed his regret that Mr. Chan Foo-muk should have attacked the eight Chinese delegates when they were in Canton. He assured us that Chan did so without the previous knowledge of the Canton Government, and that Mr. Wong Ching-wei rebuked him severely the next day, and dismissed him from the management of the Chinese Tele- graph Administration in Canton. Mr. Wong would un- doubtedly express personally to us his regret for this unfor- tunate incident, if we were ever to meet him.

5. Our conversation, with two short interruptions by visitors to see Mr. Foo, lasted from 8.15 p.m. to 11.10 p.m., and was postponed till the morning of the 3rd March.

6. After Mr. Foo left our room, we reviewed the whole con- versation, making notes of the salient points, and discussing the most important ones. We both came to the conclusion that, judging from the drift of Mr. Foo's talk, we could not avoid discussing further (though we need not make any promise) the matter of the $300,000 mentioned by the eight Chinese delegates. We also felt that to refuse to discuss the "economic

terms in any way might mean the closing of the door to further friendly negotiations. We found ourselves at some disadvantage because we were not given any indication of the policy of the Government in regard to such terms, though we had asked for it under seal of strict confidence, and on promise of not using such knowledge unless a heaven-sent opportunity should present itself during the discussion to end the whole trouble in a satisfactory and honour- able way. As we remembered having been told by the Colonial Secretary that we should be guided by the communiqué issued by the Hongkong Government on the 20th January, and by the Governor's statement of the 4th February, we looked up both, and found these words in the communique: "It was considered that negotiation on the economic' side could best-be conducted by Chinese business men: and on the understanding so reached, the Hongkong Government acquiesced in this suggestion for a visit to Canton by a delegation of eight prominent Chinese appointed by the Chinese community. It was understood that this delegation would deal directly with the Strike Committee, and would negotiate with them the economic questions, namely, strike pay and compensation for loss of employment, leaving all 'political' questions for later consideration between the two Governments; the strike and boycott to cease on settlement of the economic' questions." In the Governor's statement occurs this passage:

"I also wish it to be clearly understood that the Hongkong Government will never agree in principle to strike pay or to compensation for reinstatement of labourers." Know- ing that the last remark was made by His Excellency as a result of a

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