PUBLIC RECORD OFFICE

Reference :-

C.O.882/11

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

PUBLIC RECORD OFFICE, LONDON

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ruption of all communication with Hong Kong. The strike was to continue until the Government agreed:-

(1) To liberate prisoners taken in the anti-Communist coup of 15th April;

(2) To dissolve the " Reorganisation Commissions" which had been placed in control of the extremist organizations;

(3) To restore the status quo as it existed prior to 15th April: and

(4) To allow the use of the red flag. The strikers also proposed to call to their assistance the semi-bandit Peasants' Organizations of the country districts. The energetic action of the new Chief of Police, on 19th October, effectively prevented any outbreak and the 24th October passed without incident.

2. Meanwhile, the happy isolation which Canton had enjoyed for some months past was broken by an influx of politicians, generally of an extremist type, following in the wake of Cheung Fat-fui. Chan Kung-pok, Chan Fu-muk, Kom Nai-kwong, Ho Heung-ying (the widow of Liu Chung-hoi) and Tsui Tin-sham made their way to Canton and were given seats on the Reorganization Committee of the Pro- vincial Kuomintang. Finally, on 27th October, Wong Tsing-wai who had failed in his attempts to reconcile the conflicting elements at Nanking and Hankow, made his appearance in Hong Kong. Before his departure for Canton on the 28th October, Wong had an interview with the acting-Colonial Secretary, report of which is attached. A few days later T. V. Soong, the former Minister of Finance, accompanied by H. H. Kung and Tong Hoi-on, formerly Chairman of the Hankow British Concession, passed through Hong Kong on their way to Canton.

3. The arrival of Wong Tsing-wai again raised the hopes of the extremists. On 1st November a large body of men surrounded his house calling on him to demand on their behalf the release of the prisoners of 15th April. When he declined to interfere and referred them to the Government they refused to disperse until scattered by the police who arrested some twenty persone. On 3rd November a public reception was held, at which Wong epoke on his proposal to call a joint conference of the Kuomintang at Canton and criticised. the Nanking party. General Li Chai-sum did not attend this meeting.

4. On the same day the Anti-British Boycott Society which had been issuing manifestoes, holding meetings and passing resolutions for some time, suddenly appeared in the open and its uniformed pickets proceeded to seize British goods consigned to Chinese. The ostensible reason was the Doshing incident but the real motive was doubtless partly political and partly mercenary; political because the renewal of the boycott at this juncture would embarrass General Li Chai-Bumi; and mercenary because the organizations which conduct this par- ticular form of brigandage found that some months of peace had depleted their funds and they hoped that the authorities would be unwilling to interfere while they were being replenished.

* Not printed.

General

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Li Chai-sum is credibly supposed to be unsympathetic and willing to suppress the boycott; and this may be the reason why only isolated But the fact that cases of confiscation have been recently reported.

he was not able to suppress it at once tends to show that his position is not so strong as it appears.

Since the above was written 1 have received a telegram from Mr. Brenan to the effect that the Canton authorities have notified him that the boycott will be stopped to-day (10th November) and all seized goods restored.

5. At the moment all that can be said is that both sides are playing for position. Wong Tsing-wai has been studiously moderate in his public utterances but it is difficult to reconcile his political ambitions with his declared wish to devote his energies to making Kuangtung a model province. Only on one point has he shown signs of disagree- ment with General Li Chai-sum and that is over the question of the Northern Expedition. General Li has a considerable force of men stationed in the neighbourhood of Shiu-kwan with the ostensible purpose of co-operating with the Nanking forces in an attack on Tong Sang-chi but more probably with the intention of remaining there to protect Canton from attack. Wong's criticism of this policy has led some to believe that he intends, given sufficient support, to instigate an attack on General Li on the pretext of acting in the interests of Tong Sang-chi.

6. Meanwhile, the turbulent elements are still active. It is reported that on 7th November a meeting was held in the Tai Ping Theatre to celebrate the anniversary of the Union of Socialist Soviet Republies. The meating, it is alleged, began with the shouting of slogans "Down with Li Chai-sum, Wong Tsing-wai and Cheung Fat-fui," but was The broken up by the police before any speeches had been made. Soviet Consul-General and Vice-Consul who were present are said to have been detained by the police until their identity could be estab- lished.

7. I attach two extracts* from the vernacular papers which throw come light on the state of affairs in the interior of the province.

8. The Chinese characters* for the names in this despatch are given on a separate sheet.

I have, etc.,

W. T. SOUTHORN,

Officer Administering the Government.

• Not printed.

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