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boycott; the Canton Government were, however, sincere and would do their best. It had been very difficult, but arrangements had finally been made with the strike leaders which he believed would prove satisfactory. As an instance of their own labour troubles he mentioned that the Admiral at Whampoa was com plaining that his anti-piracy measures were held up because a strike of boiler-makers prevented necessary repairs to his gun- boats.
On the subject of the Northern Expedition he said that, while the news was not good, it was not so bad as the northern papers led one to believe reverses had been expected, and he was con- fident that any setback was merely temporary. An emissary from Chang Tso Lin was now on his way to Canton.
N. FITZMAURICE,
Vice-Consul.
The part about the proclamation is, of course, nonsense. The truth of the matter is that they cannot think of any wording which would be both satisfactory to us and acceptable to the Strike Com- mittee.
305
ENCLOSURE 3 IN No. 35.
REASONS FOR SETTLEMENT AS GIVEN BY CANTONESE.
Kung Sheung Yat Po, Hongkong, 27th September, 1926.
Translation.
Mr. Koo Mang Yü, as Chairman, called the strike leaders together on 24th instant and explained to them that the settle- ment was only a temporary measure of the Government, and that anyhow the continuance of boycotting British goods would be He further declared deeply sympathised by the Government. that, as the dominion of the Nationalist Government expanded, all industries at Canton would flourish. "Native products," said he," are only in their infancy, and if not accorded due protection they will surely perish. For this reason the Government recog- nised the necessity of prolonging the boycott, and any activities connected therewith need fear of no governmental interference."
J. F. BRENAN.
ENCLOSURE 2 IN NO. 35.
CANTON: EVENTS AND CURRENT RUMOURS.
6th October, 1926.
On the 3rd instant, Mr. Sun Fo, in his weekly report to the various local Kuo-min-tang sections regarding political develop ment of the past week, said that the present change of policy regarding the strike was by no means à fundamental settlement of the strike but was a new tactic only. Before the pulling down of Imperialism and the cancellation of unequal treaties, the anti- The Government had Imperialism movement would never cease. decided to withdraw the strike pickets on the 10th; this was meant to extend the movement, which the people of the whole nation should now take upon their own shoulders, and not leave only The late blockade to the limited number of the strikers.
policy was carried on under the supervision of a small number of the people concerned, but the new economic boycott was no doubt of the people's own accord and would be much more far- reaching and much more effective. When the Government com- mences the collection of the new taxes, it is estimated that the amount of the proceeds will reach some ten million dollars a year. The Government then will appropriate a sum for the strikers as their subsidy and use the rest of the money to com- plete the Yueh-Han railway line and open the Whampoa commer cial port. With these two things done, Canton should be economically independent of Hongkong.
ENCLOSURE 4 IN NO. 35.
With compliments from Reuters, Hongkong.
Canton,
7th October.
Acting Minister for foreign Affairs has addressed an indentic note to each of the local representatives of the foreign Powers whose nationals are in trading relation with Liang-Kwang Pro- vinces. Text follows:-
"I have the honour to communicate to you following translation of Mandate issued by my Government on 4th October:-
(1) The Ministry of Finance is hereby instructed to levy a temporary internal tax on the consumption or the pro- duction of such articles as are subject of trade between the Liang-Kwang Provinces and the other provinces in China, and foreign countries.
(2) The rate of taxation shall be equivalent to half the usual maritime or native Customs tariff (as the case may be) on general articles and to a full tariff on articles of luxury such as silk, silk-stuff, toilet articles, fur and leather articles of decoration, gems and precious stones and similar goods. Cigars, cigarettes, imported wines, kerosene and gasoline, which are the subject of other special taxes, are exempt from this tax.
(3) The Ministry of Finance for purposes of convenience may collect such taxes at or near the various maritime and native Customs barriers and is instructed to make detailed regulations governing the collection of the said tax.
V
PUBLIC RECORD OFFICE
Reference :-
PELTIC.O.882/11
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PUBLIC RECORD OFFICE, LONDON
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