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During the whole of the past week either one or two pickets have been on duty at Lowu Bridge and six others at Chinese Lowu Railway Station. North of Lowu, in the first three days of the week, pickets were seen at Man Kam To and Lo Fong Gap. Search by the pickets at Lowu has been considerably re- laxed, and people from the New Territories are now permitted to visit Sham Chun and are allowed to buy there food-stuffs in limited quantities for personal consumption, c.g.—

Rice Pork Chickens

+"

not more than 3 tau. not more than 5 catties. 3 or 4 according to size. other food-stuffs in similar proportion. Quite a number of people from the New Territories are availing themselves of this privi- lege, the cost of food-stuffs being much less at Sham Chun than All persons leaving Chinese territory, in the New Territories.

hongs in Suam with the exception of fokies of recognised

chopped Chun, are

on the fore-arm with red ink. The latest news from the frontier this morning is to the effect that yesterday afternoon a picket of four unarmed men were seen on patrol near Lo Fong Gap. Elsewhere on the frontier the situation is unchanged. I am informed that picket patrols are frequently sent out along the roads away from the frontier, more for the purpose of giving the men something to do than for any thing else.

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"

Several Chinese business men with whom I have had conver sation have expressed the opinion that, even should the pickets be entirely withdrawn, it will take some time for frontier trade to develop as the boycott has had the effect of diverting former trade into fresh channels.

2. In the early morning of Wednesday, the 29th ultimo, about 100 Cantonese troops paid a surprise visit to Sha U Cheung, Mirs Bay, General Lo Kwan's men, as usual, fleeing to the hills. The Cantonese troops, shortly after their arrival, proceeded to hold up passengers from embarking on the Taipo Ferry launch, Tai Pang: After some argument and a two hours' delay the passen gers were allowed to embark, but not before one of them had been searched and deprived of $150. A rumour that a strong force of Lo Kwan's soldiers was advancing on Sha U Cheung had the effect of causing the Cantonese troops to make a hurried departure after only a six hours' stay. They had not long left when Lo Kwan's men were back again at Sha U Cheung.

W. G. GERRARD,

293

he was allowed to find his own way as he went with a minimum of leading. He seemed to me to be telling the truth as far as he knew it; he entered rather a vague region beyond a certain at 50,000, and point, e.g., when he set the total of "strikers spoke of the total value of forfeitures-but he spoke confidently of the detailed organisation of the pickets, and of the scheme which it is proposed to substitute. His murder scheme was put quite as an ordinary matter of business; the extravagance of it, and of his requests, might seem to argue a disordered brain, but there was no sign of that in his bearing or his talk. He was, in fact, exceptionally collected, and (up to the point referred to above) spoke quite confidently and without hesitation, and created a strong impression that he knew his facts and was speak- ing the truth quite frankly. Until quite near the end he seemed to think he was making head-way with his mission.

The main point made is that on the 10th October restrictions on passengers will be removed entirely; but a new organisation -the Chap sz tui-will take the place of the pickets afloat. It will be a Government Department, with powers of search for contraband; when they note British goods, which are not other. more than inform the wise contraband, they will do no W.P.M.S.A. (Workers' Peasants' Merchants' Students' Asso- ciation) who will trace the goods to the shops and take such action as they can there. The W.P.M.S.A will continue to be a non-Government organisation, and so far we shall be returning to the position where the pickets were uncontrolled by the Government as being "a voluntary manifestation of popular feeling." Action, however, will only be taken ashore.

I have no means of verifying the story of this plot; in fact the Chap sz tui" is quite a new idea to all those to whom I have But it fits in well with the views yet had a chance to speak. generally held; that is, that there is no genuine foundation for the Canton communiqué stating that the boycott would be re- moved on the 10th.

The Consul-General may have means of testing the story; the Fong ts'un matsheds seem to provide an opening.

E. R. HALIFAX,

Secretary for Chinese Affairs.

1st October, 1926.

3rd October, 1926.

ENCLOSURE 4 IN No. 34.

HONOURABLE COLONIAL SECRETARY,

A.S.P. (N.T.)

The rambling statement herewith was made by a man who came voluntarily to the office to make the request which appears in it:

Report by Wu Kam Kan (Chinese characters), age 22, one of the Strike Leaders.

The C.P. (Communist Party, Chinese characters), at Canton They have sent have changed their policy against England. away the Tau Chat Tui (Chinese characters), but they will keep a number of Chap Sz Tui (Chinese characters), i.c., Preventive Corps. The latter will be empowered to search any boat, and will seize any British goods they happen to find.

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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