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PUBLIC RECORD OFFICE

Reference :-

C.O.882/11

| ALLY WITHOUT PERMISSION OF THE

BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

PUBLIC RECORD OFFICE, LONDON

C. 30001/27 E. [No. 15].

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No. 26.

The Officer Administering the Government of Hong Kong to the Serretary of State for the C'olonics,

(Secret.)

SIR,

(Received 20th December, 1927.)

Government House, Hong Kong, 18th November, 1927.

In continuation of my secret despatch of 10th November, 1927,* [ have the honour to report that a number of important events have occurred during the past week, leaving the general situation more obscure than ever.

2. On 10th November, the long expected disbanding of the 1925 "strikers" began when all those whose names appeared on the books of the Strike Committee received on application a sum of $60.00 in cash and $40.00 in bonds. It was reported that 6,000 persons had been paid off up to the 13th, and the latest date for application by residents of Canton has been fixed for the 25th. The Strike Committee is to continue to function as an employment bureau and to receive a monthly allowance of $3,000 from the Government.

71

3. Nominally the boycott of British goods is at an end, but actually it continues to some extent in force although resort to open seizure of goods is seldom necessary. On 14th November, a lighter containing oil, belonging to the Asiatic Petroleum Company, was seized by pickets of the boycott organization and recovered again by a British Naval armed party, but in general the Boycott Committee is content to issue " passes on payment of one per cent. or two per cent. of the value of the goods imported hoping that such petty pilfering will be overlooked by the British authorities. 1 enclose the report† broad. cast in the Canton papers of a recent meeting of this Committee. The publication with impunity of these fulminations could not but convince the timid Chinese merchant that the movement had the support of the Government and dispose him to pay thankfully the comparatively small sums exacted. It is commonly alleged that the boycott is being encouraged by the entourage of Wong Tsing-wai who are looking on all sides for supporters.

4. Meanwhile, the political situation at Canton changed rapidly in syanpathy with events elsewhere. While the issue of the struggle between Hankow and Nanking was still in doubt Wong Tsing-wai appeared determined to carry out his scheme of convening the general Conference of the Kuomintang at Canton. T. V. Soong had already left for Shanghai but other members of the Central Executive Com- mittee, Ku Mang-yii, Wong F'at-k'an, Pun Wan-ch'iu and Wong Lok-p'ing, Left wing politicians from Hankow, arrived to take his place. Wong himself was reported to be adopting an attitude of studied moderation. I enclose a translationt of a speech said to have been made by him soon after his arrival, which, however, contains little

* Not printed.

• No. 25.

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that is tangible. Another speech in which he was reported to have expressed regret for his former communistic leanings has been repudiated by him.

to

5. On 11th November, Tseung Kai-shek landed in Shanghai and on It was 15th November, Tong Sang-chi vanished from Hankow. simultaneously announced that Wong Tsing-wai had given up his inten- tion of holding the conference in Canton and that the venue would be a.m. on 16th November, transferred Shanghai; and at 4 Wong Tsing-wai, accompanied by General Li Chai-sum, arrived in Hong Kong by special train and hoarded the s.s. Empress of Asia sailing two hours later. After their departure a letter was handed to me, of which I enclose a translation.* General Cheung Fat-fui, who had reached Hong Kong a few days earlier, remained in the Colony although he was expected to accompany them to Shanghai.

6. In view of subsequent events it is useless to speculate at this period on the motives which led to this change of plan and in particular to the departure of Li Chai-sum from Canton. Popular opinion held that Wong Tsing-wai's departure was chiefly due to Li's opposition to his Canton scheme; whereas Li, who felt that he had the Canton situation well in hand and was at the same time well aware of Wong's the blow to his prestige by influence, was prepared to soften accompanying him to Shanghai.

7. However that may be, twenty-four hours after their departure, in the early morning of the 17th November, fighting broke out in the city of Canton. Detailed information is still lacking but it seems clear that at the moment the supporters of Li Chai-sum, Generals Wong Shiu-hung and Chan Chai-t'ong, have either fed or been captured, their troops in Canton have been disarmed and the city is in the hands of Wong Kei-cheung and Sit Ngok of Cheung Fat-fui's party, and of Li Fuk-lam the perfect neutral, who has, more sua, inclined to the stronger side. The success of this coup has upset all calculations and it would be rash, lacking further information, to speculate on the future course of events.

8. The Chinese characters* for the names in this despatch are given on a separate sheet,

1 have, etc.,

W. T. SOUTHORN,

Officer Administering the Government.

P.S. Since the above was written General Wong Shiu-hung has been located in Hong Kong whither he has fled for safety.

* Not printed.