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movement, saying that the strikers' good work done during the past fifteen months had been a great example to the whole nation.

4. I attach a cutting* from to-day's issue of the Hongkong Daily Press which contains a communiqué on the subject issued by the Canton Information Bureau, also a further communiqué* from the same Bureau published in to-day's issue of the South China Morning Post, explaining why the Canton Government itself made no announcement concerning the boycott. I also enclose a copy of the Canton Gazette* of the 10th October.

309

4. I enclose a copy of an extract from a communication* from Colonel F. Hayley-Bell, dated the 13th October, which points to I also enclose an ex- a return to normal conditions in Canton. tract from the Hongkong Daily Press of the 15th October, which reflects a general opinion on the present position.

5. I enclose also a copy of a speech; which I delivered yester- day at the Legislative Council on the occasion of the introduction of the Budget.

I have, &c.,

C. CLEMENTI,

160

I have, &c.,

C. CLEMENTI,

Governor, &c.

Governor, &c.

C.21191/26.

»

No. 37.

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

Secret.

SIR,

(Received 15th November, 1926.)

Government House, Hongkong, 16th October, 1926.

With reference to my secret despatch of the 13th October† on the subject of the boycott situation I have the honour to confirm my telegram of the 16th October.t

2. As I have indicated in this telegram it is impossible to fore- tell at this stage what exact course events will take. It appears certain that the Canton Government, if only from motives of increasing their revenue, desire to get rid of the strike picket incubus, but it is not as yet clear whether they are in a sufficiently strong position to deal with the organisation.

3. The Chinese merchants, who have never been noted for their courage, are, not unnaturally, holding back until they are sure that the re-opening of trade with the British will not lead to reprisals against them at a later date. On the other hand, there is a general feeling of optimism that a big step has been taken for the re-establishment of normal conditions between the Colony and the Province, and the present policy of this Govern- ment must, I think, be one of waiting on events, and taking such action as may from time to time be expedient in order to strengthen the hands of those who are working for a settlement.

+ No. 36. ↑ C.19473/26; not printed.

*Not reprinted.

(Extract.)

ENCLOSURE 1 IN No. 37.

Events and Current Rumours, Canton.

13th October, 1926.

After the " calling off of the blockade," the city communica- tion with Shameen has been resummed to normal condition; since yesterday morning both Chinese and foreigners are entering or leaving Shameen without any molestation. But the Hongkong river steamers have not yet come to anchor along their original wharves on the West Bund.

C.21741/26.

*

No. 38.

The Governor of Hongkong to the Secretary of State for the

Secret.

SIR,

Colonies.

(Received 24th November, 1926.)

Government House, Hongkong, 23rd October, 1926.

With reference to my secret despatch of the 16th October§ on the subject of the boycott situation, I have the honour to con-

• Enclosure 1. + Not reprinted.

§C.21191/26; not printed.

PUBLIC RECORD OFFICE

السيسيا

Reference :-

TLC.O.882/11

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