162

312

possible that dissension in Russia may cut off the supplies of money and arms at present being sent to China, so that their efforts may fail owing to internal difficulties in Russia.

I have, &c.,

C. CLEMENTI,

C.22164/26.

313

No. 39.

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

Governor, &c.

Secret.

SIR,

(Received 30th November, 1926.) Government House, Hongkong, 29th October, 1926.

نسلتيسيا

PUBLIC RECORD OFFICE

Reference :--

C.O.882/11

PUBLIC RECORD OFFICE, LONDON

|ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH—NOT TO

ENCLOSURE 7 in No. 38.

Harry Wicking & Co., Hongkong, 20th October, 1926. Report by one of our brokers on his return from a visit to Canton on 16th October.

Boycott of British goods still being carried out surreptitiously, goods of doubtful origin having been passed through Customs. and payment of surtax made, are seized by plain-clothes pickets in the side streets. If British, the goods are confiscated and sold by auction; if of foreign origin they are handed back to the mer- chant, who, however, has no means of redress.

Goods of English manufacture but bearing German names or trade-marks seem to be getting through without trouble, i.e.. importations by German firms.

The pickets, some of whom are late Hongkong tally-clerks, know the various shipping marks of English merchants in Hong- kong, and are able to identify British goods.

There appears to be an exhibition of all-British goods usually imported by Canton as a means of assisting the pickets to deter- mine the origin of goods.

The Canton General Chamber of Commerce, comprising 72 Guilds, is now divided into four sections. Reliable Canton mer- chants will have nothing to do with the Chamber which is admin- istered by characters of ill repute.

Our Broker states that the Canton Government is secretly encouraging and assisting the pickets, and that the official calling off the boycott was simply the result of the firmer stand taken by the British Government and in particular the despatch of fur- ther warships.

Merchants desire an end to the boycott and are not anti-British, neither, generally speaking, is the bulk of the population. They hope for the defeat of Cheung Kai-shek and for the expulsion of the Kuomintang Party from Canton, but are not optimistic. Canton community seems quite prosperous. Very few Russians left, most of them having left for the north.

Per pro Harry Wicking & Co.

H. R. REMINGTON.

In continuation of my secret despatch of the 23rd October* on the subject of the boycott situation, I have the honour to enclose a report,† dated the 24th October, from the Assistant Superin- tendent of Police, New Territories, on the general situation along the frontier. It will be seen that the situation continues satis- factory apart from a rumour that the pickets are to return as collectors of the new surtax.

Through traffic on the railway has now been re-established. 2. I enclose also copics of the statistics of passengers and cargo carried by the boats of the Hongkong, Canton & Macao Comparison with the reports Steamboat Company, Limited. enclosed in my despatch of the 23rd October* shows that the figures have been well maintained up to the 27th October. I en- close a copy of a letter from the Secretary of the Company reporting interference and intimidation which took place at Canton on the 27th October with a view to preventing passengers from going on board the British steamer. I enclose also a copy of a report from the Superintendent of Imports and Exports on this same incident. Mr. Wu Hei Tong, to whom reference is made in Mr. Lloyd's report, has himself reported to the Secretary for Chinese Affairs that attempts are being made to intimidate his staff and has handed to the Secretary for Chinese Affairs a Further threatening letter,† a translation of which is enclosed. evidence of intimidation appears in the enclosed police report† dated 28th October. An extract from the Daily Press of the 29th October referring to the trade position in Canton and Swatow is also enclosed.

3. As regards ports in the Delta, other than Canton, I enclose a report from the Harbour-master, dated 25th October, which also points to intimidation at Wuchow, and a report from the Captain Superintendent of Police, dated 28th October, concern- ing conditions at Kongmun. Both these reports point rather to the activities of labour guilds than to any organised political

movement,

I enclose copies of two letters,† dated the 15th and 23rd October, written by the Medical Superintendent of the John G. Kerr Hospital for the Insane at Canton, which afford an inter- esting sidelight on the situation there, and more particularly on the relationship between the labour unions and the Canton Government.

* No. 38.

† Not printed.

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