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PUBLIC RECORD OFFICE

Reference :--

NEPERHC.O.882/11

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PUBLIC RECORD OFFICE, LONDON

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the first letter had been delivered to Dr. To, that the Canton Council of Government, or a portion of it, reconsidered its earlier decision and sent me by the hand of Mr. Sung Tsz-man the letter which forms the 8th enclosure in my secret despatch of the 23rd December.* Later events seem to show that Dr. C. C. Wu was probably opposed to Mr. Sung's visit to Hongkong-he had him- a visit (vide self previously refused an invitation to pay me enclosure No. 4 in my secret despatch of 23rd December*); but he was probably at that time overruled by Mr. Wong Tsing-wai, Mr. Sung Tsz-man and others. During Mr. Fletcher's visit to Canton, Dr. C. C. Wu appears to have acted a part and to have concealed his real hostility to Hongkong; but he has now plainly shown his enmity and this time his colleagues seem to have let him have his way. The reasons for this change can at present only be a matter of conjecture; but I may draw attention to two new facts which perhaps have a bearing on the situation. The first is the impending transfer of Mr. Fletcher to Ceylon, the news of which became public very shortly after his return from Canton. When Mr. Fletcher has left Hongkong, it will be more easy for the Canton officials to repudiate the conversations which passed between him and them. The second fact is the return of General Cheung Kai-shek to Canton on the 1st January. Cheung Kai-shek has recently made a profession of political faith which was published as the preface to Register of Military Cadets of the Third Term at Wong-po. I attach a translation. Sir Shou- son Chow and Mr. Kotewall inform me that there can be no doubt, particularly from the Chinese original of this document, that General Cheung Kai-shek approves of Communism, con- sidering it as one with the "Three Democratic Principles

I may here add that enunciated by the late Dr. Sun Yat Sen. Mr. L. Giles, H.M. Consul at Foochow, called on General Chow Yin-jen, the Tupan of Fukien Province, on the 10th December, and was then informed by General Chou that he had come to terms with General Cheung Kai-shek who had entirely evacuated the districts in South Fukien which he had previously occupied. General Chou did not anticipate any fresh invasion of Fukien in the immediate future by troops of the Canton Government.

4. I have recently noticed with anxiety that, as progress seemed to be made towards a settlement between Hongkong and Canton, so the Canton Press became increasingly abusive and hostile to Hongkong. I attach copy of a letter dated 6th January, which I have written to H.M. Consul-General at Canton on this point. Doubtless the Strike Committee, which is the only body of men that derives substantial benefit from the boycott, is angry at the idea of a settlement and I fear that the Canton Government has no real wish to exert a moderating influence on those Canton newspapers which reflect the views of the Strike Committee.

5. My attention has also been drawn to a letter written by Mr. Wong Tsing-wai to the Strike Committee and published in the Canton newspapers on the 20th December. The translation is as

follows:-

·

*

We have received a letter from So Shiu Ching, member

of the Strike Commission, which reads as follows:-

*No. 2.

**

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US

steamers

that the It has been reported to Honam and Fatshan' take with them some passen- gers and cargoes on their route to Hongkong every day. Enquiries show that this is owing to the assist- "ance and abetting of some volunteer corps and some

feigned soldiers, and is prejudicial to the strike. beg that the Admiralty may be instructed to send some gun-boats to help us.

We

"On receipt of this letter we have had discussion made "and resolved to act as requested. As in duty bound, we

send this reply for your information.

This is sent to the Canton and Hongkong Strike Com- mission."

This letter was written just before the visit paid to me by Mr. Sung Tsz-man and if authentic (as to which point I am making inquiry), it is clear proof that Mr. Wong Tsing-wai was then actively assisting the Strike Committee. I enclose copy of a letter which I addressed to Sir James Jamieson on this matter.

6. I discussed on the 4th January very fully with Sir Shou-son Chow, Mr. Kotewall and the members of the Executive Council the position with which we we are now confronted; and we feel bound to conclude that a majority of the present Canton Council of Government is opposed to a settlement of the boycott except upon terms which would humiliate Great Britain and which would, therefore, be even more prejudicial to the future of British interests in China than a continuation of the existing boycott. The obvious remedy would be to upset the present Canton Government, which has many enemies in other provinces of China. But there is no Chinese force at hand which could do this; and British action, such as a blockade of Canton by naval and military force, might only aggravate the situation by rally- ing nationalist feeling in other parts of China to the support of the present Canton Government and would certainly embitter future relations between Hongkong and Canton as well

There is, moreover, between British and Chinese generally. good reason to believe that General Feng Yu-siang, who appears at the moment to be in authority at Peking, is on friendly terms with General Cheung Kai-shek: and the shadowy Cabinet just constituted in Peking is perhaps also favourably disposed towards the men who compose the Canton Council of Government. The moment would, therefore, be very inopportune for action in Kuang-tung by British force alone, and I am by no means sure that a blockade of the West River Delta would even temporarily end the boycott: for the Canton Government, although it would certainly be hard hit by a blockade, might (if national and popular sentiment were behind it) hold out for months much as Hongkong has done against the boycott.

as

7. I have, therefore, come to the conclusion, in which the Executive Council unanimously agrees, that the only possible course at present is for Hongkong to hold out perseveringly until either the present Canton Government is overthrown by some hostile Chinese General, a contingency which for the time being is unlikely, or until the lapse of time and the increasing inconvenience to the Canton Authorities of tolerating an

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