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realising this, requested Mr. Chow Shou-son and me to make special efforts to get the theatres and tea-shops re-open, and thanks to the personal efforts of Mr. Li Yau-tsun, we succeeded in having the latter resume business after four or five days' work. 99. The equivalent of the tea-house for the upper and the middle class is the theatre, women in particular being in this country as I am seriously of the in others ardent devotees of the stage. opinion that if some good theatrical troupes were performing in our theatres now many women who are remaining in Canton and Macao would return to Hongkong. One amusing sidelight on the unexpected results of this strike is afforded by the four- fold increase in the sale of Chinese records, due to the fact that the women have taken to the gramophone as a poor substitute for their favourite recreation.

100. Recommendation: It would therefore be well in future, on the approach of a strike, to persuade any good troupes which may happen to be performing in Hongkong, to remain here, even though we may have to resort to informal governmental inter- vention. It would also be advisable to do everything possible to keep the Chinese tea-houses open. In times of panic and inten- sity anything which will provide relaxation on accustomed lines should be maintained, for they would have a great quieting influence on the minds of the public.

Necessity for Reliable Information from Canton in time of Strike. 101. Throughout the strike I have found our work considerably handicapped through the lack of adequate and reliable informa- tion from Canton and other places where the work of our enemies is active. In order to repair the deficiency to some extent, I arranged with Mr. Li Yau-tsun and Mr. Li Yik-mui to help me in obtaining news from Canton. These two gentlemen were able to get some news at the commencement, but even these were at When communication by sea was best meagre and irregular.

interrupted, Mr. Li Yau-tsun's source of supply was stopped; and Mr. Li Yik-mui's agent had to send reports through Macao about once a week, and even this service came to an end after a fort- night or so.

102. Recommendation: This has proven to us the necessity for some arrangement whereby we can obtain reliable information from Canton at times such as this; and I am sure that with a little trouble we will be able to find suitable and trustworthy agents to undertake the work for us.

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103. In regard to Shanghai, I have been able to establish unofficial way, with Mr. C. regular communication, in Champkin, the manager of the Peninsular & Oriental Bank there, who for a time acted as the representative of the British Chamber of Commerce in negotiations for a settlement with the Chinese Chamber of Commerce at Shanghai. On two occasions Mr. Champkin telegraphed to me for my views on matters relating to his negotiation, and I am glad to say that my suggestions, sent with the knowledge of His Excellency the Governor, were acted upon in both cases. Though no great gain to either side could be said to have resulted from these exchanges of news and ideas, the arrangement was obviously desirable from more than one point of view.

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Relatives of Canton Officials in Hongkong.

104. Many high officials in the Canton Government have had their families in Hongkong from time to time during the strike. Wu Han-min's daughters, and C. C. Wu's mother and children are still here; and there was an influx of political refugees when Chang Kai-shek turned against his associates after the assassina- tion of Liao Chung-kai. Among them Wu Han-min's elder brother came down, and wanted to stay here, but he was It is the very properly told that his presence was not desired. opinion of the loyal Chinese that the traditional liberal policy of England which has made Hongkong a city of refuge for Chinese politicians, ought now to be modified. When it is a question of receiving refugees whose offence is purely one of disagreement with his own people, the policy is wise. But where a whole party has been openly hostile to us, and has attempted to ruin us, it is foolish to give shelter to one faction of that party just because another faction has thrust it off the spoils of office. Such kind- ness earns not gratitude but contempt, and we should make it clear that we will not in future give asylum to those who have been our enemies.

Reasons for our Success in Maintaining Peace and Order. 105. It is generally admitted by visitors to the Colony and other observers that peace and order has been very successfully main- tained during the strike. What were the factors, apart from the particular measures, which have contributed to this success? They were, first, the co-operation of almost the entire foreign community and the Chinese of the upper and middle class with the Government; and, secondly, the close co-operation between the Government and the Chinese representatives.

106. For about ten days before the strike, the Secretary for Chinese Affairs was in daily touch with the two Chinese members of the Legislative Council, endeavouring to prevent the strike, and preparing to meet the danger, if the strike should break out. From the 19th June to the date of writing this, the Hon. Mr. D. W. Tratman (Secretary for Chinese Affairs), Mr. A. G. M. Fletcher (Assistant Colonial Secretary) and I have met every Mr. Chow morning to discuss matters concerning the strike. Shou-son and Mr. T. H. King were occasionally present during the first fortnight. Since then and after the return of Mr. P. P. J. Wodehouse, Mr. Chow Shou-son and Mr. Wodehouse have met the other three almost daily. There were also occasional meetings I should like to from time to time as emergencies arose. emphasise what a happy inspiration it was to hold these 9 o'clock Mr. Chow conferences with the Government representatives. Shou-son and I felt that we had the full sympathy and under- standing of the Government in a task which was often difficult and always anxious. We were instantly informed of any news received by the Government, and this implicit confidence as well of great as the sympathetic atmosphere has been the source encouragement to us. One morning in the early part of July, His Excellency the Governor visited Dr. Tso's department in the Labour Control, and also my office when some of the heads of the sections were present, and he personally thanked them for their efforts. This gracious act greatly encouraged the men to better efforts.

PUBLIC RECORD OFFICE

Reference :-

C.O.882/11

PUBLIC RECORD OFFICE, LONDON

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