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PUBLIC RECORD OFFICE

Reference :--

TEC.O. 882/11

PUBLIC RECORD OFFICE, LONDON

| ALLY WITHOUT PERMISSION OF THE

BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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Counter Propaganda among Chinese abroad.

63. When the shooting incident in Shanghai was followed by similar unfortunate events in Hankow and Canton, the latter involving considerable loss of life, Chinese opinion became violently anti-British. This was particularly true of the Over- seas Chinese, who showed their sympathies by making large remittances to Shanghai and, later, to Canton, to assist the strikers. In endeavouring to overcome this feeling we adopted the same procedure as in our local propaganda, beginning gently but increasing our effort as our first measures took effect. We sent our leaflets and the " Kung Sheung to centres in America, Australia, the Indies, and other places; and we arranged for occasional private letters to be sent by selected men to their friends. When we calculated that this literature had reached their destination, and had had time to work its influence, we arranged for the Chinese Chamber of Commerce, the Associa- tion of the Twenty-four Mercantile Guilds, and the Committee of the Tung Wah Hospital to send a telegram to the Overseas Chinese, translation of which is given below:-

"The present commotions in Canton which are ruining the trade and industries of Canton and Hongkong and bringing calamity to workmen and merchants alike are beyond all doubt due to the Canton Government's outright adopting of Russian Bolshevist principles. The control of all the naval and military forces has passed entirely into the hands of Russians. It has been definitely decided to put Com. munism in force and impose a levy on all building construc- tion and house property. A reign of terror is being inaugurated throughout the Province to the unspeakable dis- tress of its population. If assistance is not speedily given this poisonous tide of Bolshevism will steadily grow until it engulfs the whole of China beyond hope of redemption. We on the spot see with our own eyes the appalling nature of the situation. But we fear that our friends in distant parts of the world may not realise the truth, and are therefore addressing you in order that all may know the facts. We implore you not to be misled by lying propaganda. From the Chinese Chamber of Commerce, the Tung Wah Hospital and the Association of Twenty-four Mercantile Guilds of Hongkong."

64. The Tung Wah Committee is widely known and universally respected among Overseas Chinese, but had never before taken any part in politics. Their association with the despatch of the telegram undoubtedly added considerable weight to it. In reply to the message powerful associations, which till then had been silent, began to cable to China and Hongkong for further infor- mation, and almost all Chinese public bodies stopped sending remittances. In two cases, however, abusive replies were received, but on the other hand the moderate section of the Kuomintang was encouraged by our success to send telegrams abroad condemning the Reds.

65. The evidence of the anti-Red attitude of, the Overseas Chinese continues to accumulate. On the 15th October the Chi Kung Tong, the largest and most powerful association in North

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and South America, passed resolutions condemning the Reds, and elected Chan Chung-ming to be its president, and Tang Chi-yiao (the Tuchun of Yunnan), vice-president.

Street Lectures.

66. The fertile brain of General Leung evolved, in the middle of July, an idea of giving lectures in the streets to counteract the influence of agitators. And this dangerous service was started by a friend of his, Mr. Kong Kit-ting, who began by lecturing at the Chinese Recreation Ground, where the rowdies mostly collect. I myself and Mr. Wong Tak-kwong heard him there, and we were struck not only by the quiet attention of the audience, but also by the fact that they asked questions with an evident desire to be given accurate information, and a willingness to be convinced. Although Mr. Kong was stoned on two occasions, the protection of the Labour Protection Bureau was sufficient to The arrest of the suspected enable this work to be carried on. offenders in the case of the second stoning prevented a repetition. Shortly after Mr. Kong began, some six Chinese gentlemen (five of the old literary class and one a graduate of an American The services of University) offered themselves for this work. three have been utilised, and we are paying them a conveyance allowance of $60 a month each, as they are required to lecture at all places (including the New Territories), wherever our informa- tion leads us to believe that their services would be beneficial.

Financial Measure—(a) Embargo on Export of Money.

67. When a general strike is combined with a nation-wide boycott, the financial effects are not much less than those of an It is not surprising international war and partial blockade. therefore that the financial structure of Hongkong broke down under this double strain. While the strike paralysed the banking activities of the Chinese, the boycott struck at the community as a whole.

68. The European banks were able to meet the storm, and ultimately to afford considerable assistance to the Chinese native The first effect of the disturbance was the heavy with- banks. drawal from the Chinese banks of notes and specie, which began to leave the Colony. On the 22nd June, the Government issued a proclamation prohibiting the export of gold and silver coins in amounts exceeding $5, and gold and silver bullion; and also bank-notes of every description in amounts exceeding $5. Although many bank-notes of large denomination were smuggled out, this measure did succeed in checkmating the systematic and organised attempt of Canton to drain the Colony of its currency. and, if possible, to cause wholesale failure of the Chinese banks. Even at that time confidence in the foreign banks was apparently unshaken, for Hongkong bank-notes were being taken out of the Colony instead of being presented for encashment. The angry comments of the Canton Press on this action showed how dis- appointed our enemy was.