CO885-11 — Page 35

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PUBLIC RECORD OFFICE

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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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The terms put forward by the strikers were discussed in some detail. Mr. Sung admitted that they had never been formally recognised or supported by his Government and he thought that the strikers had no intention of insisting upon any of the points He wished. affecting the British sovereignty in Hongkong. however, to point out in a friendly way that there was a real feeling among the working classes that the two Chinese members of Council represented merely a small minority of the wealthy merchants, while the labourers had no means of making them- selves heard. The ordinary channel of the Secretary for Chinese Affair's office was not sufficient. He suggested that the appoint- ment of a labour member by the Governor would do much to strengthen the Government's position vis-à-vis labour.

There were only two matters which stood definitely in the way of a settlement-the reinstatement of strikers and the grant of strike pay. The question of reinstatement admittedly bristled with difficulties, and it might be got over by extra payment. The labourers looked at the matter from the following point of view: They came out from patriotic motives. They gave up everything, and it was impossible that they should now be left in the lurch. Under strike conditions they were fed and housed and clothed and they had a little money. But if the strike ceased, they would be destitute. The merchants, it was true, had suffered heavy losses, but these losses did not amount to destitution and it was fair that the merchants should bear their full share in the burden of patriotism by providing the labourers with the means for their future livelihood. The Hongkong merchants were after all Chinese, and the strikers were, taking a long view, striking partly in their interests. It was logical that the Canton merchants should share the burden, but it was no longer possible to use the old method of a compulsory levy, and it was doubtful whether the Canton merchants could be persuaded to pay any substantial sum. Mr. Sung concurred that the logical conclusion from his line of argument was that there was no possible ground for pay- ment by British merchants. He hoped that the British merchants would join in, in order that a sufficient sum might be raised, but it was immaterial where the money came from.

Two things should be very clearly understood. Firstly, the Canton Government could never under any circumstances let labour down. Labour had helped them to their present position, they depended largely upon labour for their future maintenance in power, and the movement which they were heading was one for the government of the whole of China.by the people. The power of labour in China was not properly understood. It was now very great indeed. In September last Chang Tso-lin had forcibly closed the Shanghai Unions and had shot certain strikers in Tientsin. The Canton authorities were at once certain that his fall must be a matter of weeks only. The event had proved them right. A few defections might be explained away, but the only possible explanation of the wholesale desertions by the rank and file was the fact that he had offended labour.

The second point regarding which there should be no misunder- standing was the definite fact that, if it was merely a question of finance, the strikers could carry on indefinitely. Mr. Sung was not prepared to say that the Government would tolerate the

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levying of squeeze or that subscriptions would continue to come from abroad, but still there must be no mistake. The necessary funds would never fail. (I gained a strong impression that Mr. Sung wished to convey a hint that the Government was sub- sidising the strikers.)

If no settlement was reached, the strike would not gradually The organisation peter out, at least not for a long time to come. required to keep it going was not large nor particularly difficult to maintain, and the strikers were very much in earnest and were determined to continue the boycott until a satisfactory settlement was come to. Canton was becoming accustomed to boycott con- Big interests were ditions and was adapting herself to them.. growing up among the merchants which were strongly opposed to an arrangement. This was particularly the case with regard to shipping, and among merchants who had established with Shanghai and elsewhere a new trade which had formerly been with Hongkong. Canton was finding that in various ways, especially in coastal shipping, she could get along without Hongkong.

I put to Mr. Sung the point of view of Hongkong. The Hong- kong merchant claimed that labour had no grievance of any sort against himself or any Hongkong conditions, and had gone on strike on account of circumstances which it was quite out of the power of anyone in Hongkong to alter or control. Labour had done its utmost to ruin Hongkong, and it was sheer black- mail to demand a money payment as a condition of terminating the boycott. The merchants could not be compelled to pay. Many of them would refuse absolutely to do so, and even if the merchants' representatives should be in favour of a payment, it might be impossible to raise the money. Labour had done its utmost to deprive the merchants of the power to pay, and it was unlikely that a large sum in ready cash could be made available. Admittedly, with the revival of trade, prosperity would return, and payment could be made later. But it must be clearly under- stood that, if the merchants should decide to come to some such arrangement, the Hongkong Government stood entirely aloof and assumed no responsibility whatever. It would be for labour and the merchants to arrange such guarantees as they could agree upon. The Government was not going to allow a repeti- tion of the misunderstanding caused at the last strike by the Ho Tung incident. (This had been discussed separately.)

Mr. Sung suggested that the community should be taxed to provide the money, or it should be advanced out of the trade loan. I said that the former alternative was out of the question, and with regard to the latter the Government did not wish to countenance any payment. If, however, the question of a final settlement resolved itself into one of the provision of strike pay, there would be no longer any necessity for Government repre- sentatives, except that the Government of Hongkong must ask the Canton Government to use its good offices in persuading the strikers to be reasonable and in inducing the Canton merchants to take their share. The position would be explained to the mer- chants in Hongkong, and they, if they so desired, would select their own representatives to meet the strikers for the pur- pose of arriving at a satisfactory bargain, if possible.