CO885-11 — Page 11

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PUBLIC RECORD OFFICE

Reference :-

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C.O.882/11

PUBLIC RECORD OFFICE, LONDON

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

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or less played into the hands of our enemy. The strikers once having reached Chinese Territory are completely under the con- trol of the Canton Authorities who draft them into the Labour Army, force them to join the Kuomintang, or keep them hanging about Canton until it suits the Authorities to allow them to return to Hongkong. In spite of this. I think that the policy is a wise one. If these men returned to-morrow in any large numbers, we could find no employment for all of them, for our trade is paralysed by the boycott. Had they remained, the Government could not have let them starve, and the boycott which has deprived us of our income would at the same time have saddled us with the maintenance of these undesirables. But the policy might not suit all occasions, and should be carefully considered on each.

Declaration of a State of Emergency.

15. On the 22nd June the Government declared that a state of emergency existed, and took measures to maintain peace and order, to provide a new organisation to replace that temporarily paralysed by the strikers, and to safeguard the interests of the Colony generally, Food, Transport and Labour Controls were established; Cable, Postal and Newspaper Censorships were instituted; the Volunteers were called tip: Special Police were enrolled; compensation was promised in case of death or injury as a result of remaining at work; a reward was offered for the arrest of agitators; and the free export of foodstuffs and money was prohibited.

Food Control.

16. The Food Controller, Mr. N. L. Smith, has no doubt reported in detail the work of this Department, and the services rendered by his Assistants. Probably the greatest difficulty the Department encountered at the start was the refusal of stall- holders in the markets to function. For a few days there was, an actual shortage of vegetables, only small quantities from the New Territories being available; and for a day or two no beef or pork could be had at all. To meet this shortage the Govern- ment permitted the free hawking of fresh meat, fish and vege- tables in the streets, and this timely action helped materially towards the early resumption of business by the market people. When the shortage was at its height, when prices of rice went abnormally high, the Committee of the Tung Wah Hospital, with the help of the Chinese Assistant Food Controllers, estab- lished rice and pork' stalls, and personally attended to the sales. The former commodity was sold in suell quantities and at cheap prices to the poor, but very soon the considerable drop in prices The Government's policy of rendered such action unnecessary. ridding the Colony of idlers saved us from any grave problem of food supply. By about the end of July our food situation became practically normal again. For this, the Food Controller and his Assistants (particularly Mr. Ho Kwong) deserve full credit, as do the Directors of the Tung Wah Hospital (especially its Chairman, Mr. Ma Qui-chiu), who, at a time when threats were rife, established and personally assisted at the food-staffs.

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Prohibition of-Foodstuffs to Canton.

17. This measure must be admitted to have failed (at least on this occasion), mainly owing to an exceptionally good rice harvest which rendered Canton for once almost independent of outside supplies. There were, of course, other reasons. The chief was that there was nothing to prevent rice and other commodities going direct to Canton in the absence of a blockade, and that the consequence to be anticipated from our prohibition was a diversion of the trade from British ships and from Hongkong. There were also the considerations that the prohibition of the export of rice immobilised large resources at a time of strin- gency; that it might lead to financial losses through deteriora- tion if the commodity were kept in the godowns for any length of time; and it certainly did not seriously inconvenience Canton, whatever the rumours to the contrary. In the earlier part of August the Government wisely lifted the embargo, only stipu lating that prices and stocks should be maintained at a certain level.

Transport Control: Land and Water.

18. There has scarcely been any dislocation of our transport system on land, thanks to the smooth working of this Depart- ment under the capable control of the Honourable Mr. C. Mcl. Messer, O.B.E. The development of our roads and the large increase in the number of motor vehicles in the Colony in recent years, have converted what was once a vulnerable joint in our armour into a strong point to-day.

19. The trams were suspended for a period of nine days, and the service was resumed on the 30th June with a limited number of cars running under Portuguese and European temporary drivers and conductors. Strong attempts were made to intimidate those using the trams, but the police and the Labour Protection Bureau (see para. 43) were able to cope successfully with these attempts. Later the Labour Protection Bureau was also able to protect permanent drivers and conductors at their work.

20. As regards water transport, the crews of the Star Ferry struck, as did those of the harbour launches and the motor-boats A Department was formed for the issue of on the 27th June. passes to Chinese wishing to cross by the Star Ferry boats. There were two offices, one in Hongkong under Mr. Sum Pak-ming, and one in Kowloon under Mr. Li Jow-son, both of whom discharged their duties with tact and discretion.

Labour Control.

21. Two days after the establishment of the Labour Bureau under Mr. G. M. Young, M.B.E., Dr. S. W: Tso was, upon my recommendation, appointed to be Assistant Controller in The work of charge of the Chinese side of the Department. these two gentlemen was eminently successful. In any strike In the the best weapon against the striker is his replacement either by a machine, as in transport, or by another worker. peculiar circumstances of this strike caused, as it was, by a lying