CO885-11 — Page 164

PUBLIC RECORD OFFICE

Reference :--

C.O.882/11

PUBLIC RECORD OFFICE. LONDON

| ALLY WITHOUT PERMISSION OF THE

BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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5. Conditions in Swatow have shown a very marked improve- ment as stated in Mr. Sutherland's letter. I enclose also a copy of a telegram* from the Senior Naval Officer, Swatow, dated the 3rd November, to the same effect.

6. I enclose a copy of a report from Rear-Admiral Stirling concerning aircraft at Canton.

7. While the general trade position seems to maintain the improvement which set in about the beginning of October, the position is by no means satisfactory. Anti-British manifestations appear to be on the increase. Organisations for the continuance of the boycott are being allowed full play by the Canton Govern- ment. Three are especially noteworthy :-

(a) There is first the Anti-British Economic Severance Extension Committee which, on the 1st November, began an investigation of British goods stored in the shops at Canton. The so-called " Investigating Company" is formed by mem- bers of the Chambers of Commerce, the Students' Union and the Labour Unions, and it consists of 300 "inspectors," divided into twelve units. These inspectors distributed on the 1st November some 50,000 blank forms to Chinese shops in Canton. The particulars to be filled in on the form were as follows:-

1. The name of the shop.

2. Its address.

3. Owner's and manager's names.

4. Classification.

5. Name of the article.

6. Trade mark.

7. Company's name and its agent in China.

8. Total quantity in stock.

9. Value and unit.

10. Total value.

11. When bought in.

12. Where the goods now are.

Each shop is requested to fill in all these particulars and then to send the form to the British Goods Investigation Depart- ment within a week. It is laid down that no fresh British goods should be on sale after the old stock is finished. The whole investigation is expected to be complete in a month.

(b) An Unequal Treaty Cancellation Committee has been formed at Canton with the object that all treaties unfavour- able to China should be abolished. This Committee was organised at a meeting on the 1st November in the Nationalist Government Building, at which delegates from some forty public organisations were present and a detailed report was made by a Chinese student returned from Belgium."

(c) The Cargo-boat Transportation Guild had a general meeting on the 31st October at Canton with the members of

• Not printed.

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the Branch Guilds in outlying ports to discuss a proposal that no guild boat should be allowed to handle British goods; and the Customs Brokers informed Colonel Hayley-Bell, the Commissioner of Customs at Canton, on the 2nd November, that the Guild had issued orders to all cargo boats that they must not load or unload cargo for Messrs. Butterfield and Swire, Messrs, Jardine, Matheson and Company, the Hong- kong-Canton and Macao Steamboat Company and the Sai Hing steamers. Colonel Hayley-Bell has replied through the Canton Harbour Master that all cargo boats so refusing to load or unload cargo will have their licences taken away.

8. So long as agitation by organisations such as these and by the Seamen's Union is allowed to continue by the Canton Govern- ment, it is hopeless to expect any real improvement; and I am convinced that the present authorities will only go so far in sup- pressing agitators as they may think essential to avoid an open conflict with the British Government.

9. There are persistent rumours, which appear well founded, that General Cheung Kai-shek has died of wounds in a hospital in Chang-sha. If this is correct, it may perhaps have an influence on the civil war in central China, but in the south it will probably result in more power falling into the hands of the more extreme and Bolshevised elements of the Koumintang. In this connection it is reported that Mr. Wong Ching-wai, who fled from Canton some months ago as the result, it is reported, of disagreement with Cheung Kai-shek, has now returned to Canton. I have so far not had any authentic information as to Mr. Wong's return.

No. 449/H.K.051.

I have, &c.,

C. CLEMENTI,

ENCLOSURE IN NO. 40.

Governor, &c.

From The Commodore, Hongkong, to The Commander-in-Chief, China Station.

Aircraft at Canton.

2nd November, 1926. For several days until 29th October, 1926, no aircraft have been observed flying over Canton and vicinity. On 29th October, 1926, one Avro and one foreign-built aeroplane were observed exercising during the forenoon.

2. About four serviceable machines were reported on 29th October, 1926, to be at the Canton Aerodrome.

3. There is no information as to what pilots are available.

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