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107. At the suggestion of the Hon. Mr. P. H. Holyoak, repre- sentatives of the Hongkong General Chamber of Commerce and those of the Chinese General Chamber of Commerce met on two occasions to exchange ideas and information; and these meetings resulted in a much better understanding on both sides.

Work of co-ordinating Chinese activities.

age.

He

108. For the benefit of anyone who may have to undertake the task on a future occasion, I will describe in some detail the work of co-ordinating Chinese activities. This work was conceded to me by Mr. Chow Shou-son on account of his advanced did not, however, spare himself in any other way, and freely gave me the benefit of his experience and wisdom on all occasions. The Chinese activities were co-ordinated by a daily meeting (including Sundays and holidays during the first eight weeks) in my office at about 10 a.in. after the conference above referred to, when the previous day's work was reported to me by the heads of the various sections, and my instructions were given to them and to other fellow workers, who never questioned them but carried them out to the last detail. This part of the work was usually finished by 12 noon, and thereafter attention was given to fresh problems which had arisen during the morning's confer- ence, and to receiving incessant streams of visitors. In the even- ing I kept open house for any who wished to see me, but as these people very often particularly wanted to see nobody else, it was necessary to keep two, and sometimes three, separate rooms for interviews and to make use of the two front doors with which my house is fortunately provided. It was in some of these interviews that we received valuable information from members of the guilds about the enemy's movements or intentions; and it was in some of these interviews that Mr. Chow Shou-son (when- ever I needed his assistance) showed admirable diplomatic skill and address. All this machinery took four days to get into full working order; and if my suggestions for a permanent organisa- tion of volunteer workers are carried out, it could be mobilised in one day. There was no breakdown in the arrangements, but the interviewing of visitors occupied much time, and proved a very great strain; and often I felt the lack of someone to relieve me of part of this confidential work of interviewing the less important visitors, and of writing and answering letters. The one man to whom I could have safely assigned this work-Mr. Wong Tak-kwong-was too valuable to be spared from his numerous other duties.

109. During the first few days of the trouble, the Chinese here were bewildered, and did not know what to think. This confused state of mind was not so much definitely hostile as uncertain and perplexed, but it could easily have turned into an anti-British feeling if definite leadership had not been provided. The Chinese are reasonable and shrewd; they are perfectly able to judge a case But they for themselves, if it is properly presented to them. require the case to be presented by someone in whom they have confidence; and once they have given their confidence to the The first step, leader they will follow him unquestioningly. therefore was to find people who could put the case to their fellow

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countrymen. These men were found in Mr. Li Yau-tsun, Dr. S. W. Tso, Mr. Ho Kwong, Mr. J. M. Wong, Mr. M. K. Lo, Mr. Ho Leung, Mr. Wong Kwong-tin, Mr. Fung Ping-shan, Mr. H. K. Hung, Mr. Wong Tak-kwong, and Mr. Li Jow-son; and these became emissaries of the truth to their fellow Chinese. Seven days later the leaven had begun to work, and some 30 men could be collected together in my office to give advice and The views to Mr. Chow Shou-son and me on the situation. opinions of these men were sifted and selected, and such informal consultations were repeated from time to time with smaller groups of specialists drawn from this and other bodies of men. In this way, while a sense of civic pride and civic responsibility was instilled in these men, contact was kept with Chinese public opinion at all times.

Necessity for continued watchfulness.

110. Though we have achieved a certain measure of success in maintaining peace and order in the Colony, we are by no means out of the danger that has beset us. The Canton Authorities have in no whit slackened their efforts against us. The boycott is still being conducted with the same severity as ever; there is no sign of any proposal to restore communication between Canton and Hongkong; and attempts have been made, even during the last two days, to frighten our street lecturers, and to derail one of our lower tramcars. If it were only the Chinese in disagree- ment with us there might be some hope of a settlement in the near future, but unfortunately we have the Russian Bolshevists behind them, and these would stop at nothing to work our ruin. I do not think that the British public even now realises the extent of Russian influence in Canton, or the danger in which Hongkong stands as a result of that influence. Every Russian steamer from the North brings down a dozen or so Russians, and our informa- tion shows that there are now a thousand of them in Canton as against only about a hundred before the defeat of the Yunnanese. Moreover, large imports of war materials are being made by the Russians: over 10,000 modern rifles, 10,000,000 cartridges and several field guns have already reached Canton. The rifles are said to be of Japanese make, and may perhaps have been captured in 1920 from the Kolchak troops in Siberia. If this inflow con- tinues, the Russians will soon be the real masters of Canton by virtue of numbers as well as influence; they will train the Canton troops in such a way as to make them a real menace to Hong- kong. The strength of our frontier is not sufficient to enable us to regard this danger with equanimity, and the record of the Red Army in Russia shows that its officers are by no means to be regarded as a negligible force. It is reported to us, though I do not know with what truth, that the Russians are putting together parts of aeroplanes and submarines at Whampoa. Even if this is not a fact, the idea is evidently there, and there is nothing I am unable to make any inherently impossible in this purpose. suggestion as to the means by which this danger can be met beyond making it clear that the antagonism of Canton is not the antagonism primarily of the Chinese people, and should not be lightly treated.

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