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5. Had the Hongkong Guild of Engineers and Mechanics-in this respect the most important and powerful in the Colony- given way, the victory would have been a notable one for Canton The Canton Strike and would have had a far-reaching effect. Committee was bent on succeeding, and (it appears) felt assured of success: for a matshed was erected on the Chinese side of the frontier at Shamchun and delegates were sent there from Canton, to arrange for the reception of the expected strikers; while, in furtherance presumably of the general design, these delegates let it be known that after Chinese New Year the frontier would be completely closed. However, not more than 50 men in all crossed the border to Shamchun: and these, it is said, were mostly loafers and unemployables.

6: It was to be expected that officials of the Seamen's Union would co-operate with the organisers of this conspiracy, the more so as it appeared to offer seamen strikers an opportunity of dis- placing again, on expiration of their six months' articles. the "blacklegs" who had displaced them in June and July, 1925. Agents were undoubtedly at work on ships, but met with no success and so far as I am aware occasioned no inconvenience to shipping.

7. The attentions of the agitators were by no means confined to the Guild of Engineers and Mechanics and to the crews of the ships. There were rumours that they had approached the crews of the Harbour Ferries, and Naval Ratings were held in readiness by Commodore Stirling at my request to maintain the service should the necessity arise. It would appear that little persistence was shown in this line of attack, for no sign of wavering was observed and the rumour died away within a few days.

8. Sporadic attempts were made without success to influence servants in European employ on the Peak and elsewhere to abscond and the activities of the conspirators took other forms also. Their number was estimated at some 400 to 500 in all: and it is interesting to learn that the position of strike agitator in Hongkong has become sufficiently unpopular to necessitate the drawing of lots in Canton for such unattractive duty.

9. There was no unusual exodus from the Colony during the holidays connected with Chinese New Year. Indeed the number of persons leaving the Colony by rail and by the Sha U Chung Ferry launch from Tai Po has been below the average of the Chinese New Year season. A tow junk hired by the Sha U Chung Ferry Company in anticipation of the usual overflow of passengers has not yet been employed.

10. It is satisfactory, therefore, to be able to report that this critical season of the year has passed without any further disturb- ance of local conditions. The complete failure of the attempted strike has a positive value in showing a growing power of resist ance to Bolshevik propaganda on the part of the Chinese com- munity and it is an encouraging sign that the financial settlemeni among the merchants contained no feature to justify the alarm with which it had been anticipated.

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11. I took occasion to refer publicly to this victory over the Canton Strike Committee at the annual dinner of the Institute of Engineers and Shipbuilders of Hongkong, which was held on the 19th February; and, as I understand that a summary of what I then said was telegraphed to London by Reuter's Agency, I enclose for your information a copy of my speech.

I have, &c.,

S

C. CLEMENTI,

Governor, &c.

ENCLOSURE IN No. 10.

Speech by Sir Cecil Clementi at dinner of Institution of Engineers and Shipbuilders of Hongkong, on the 19th February, 1926.

MR. CHAIRMAN,

I am very grateful to Mr. Dyer for the manner in which he has proposed the toast of my health, and I thank you. gentlemen, for the manner in which you have received it; for I need all the health and strength you wish me in order to surmount the difficulties of my present task, I may well define that task as being the main- tenance and furtherance of all that engineers and shipbuilders have done for this wonderful Colony. Engineers have made the level land along the harbour front, where our daily business is transacted, and they have directed the very specialised work of cutting down hills and throwing them into the sea, which is so characteristic of Hongkong. They have made the Peak District accessible to us both by tramway and by road. They have built the fine edifices which we inhabit on the hill tops, at the foot of the hills and in every nook and cranny of the hillsides in which a house can be placed. They have built our wharves and docks, our railways, telegraphs and telephones. They have stored up the water of this Island of Fragrant Streams for the use of its steadily growing population. They have lit up the whole Peak District with electricity, so that at night one hardly knows where the lamps end and the stars begin. In a word, they have made life on this once barren island both healthy and comfortable, while their colleagues, the shipbuilders, have made it profitable as well. It is the shipping of Hongkong which gives Hongkong its wealth and importance. Therefore, in a very real sense the shipbuilders are the creators of this Colony. I am glad to-night to find myself in the company of men whose aft has made Hongkong what it is. I am proud to be your honorary president, and with all my heart I wish success to the engineers and shipbuilders of Hong- kong.

I desire also to avail myself of this occasion to say a special word of thanks and praise in this company to the Chinese Engineering Guild of Hongkong. For some days before Chinese New Year a very determined effort was made by the Canton Strike Committee to persuade the members of that Guild to down tools.

i

PUBLIC RECORD OFFICE

Reference :-

C.O.882/11

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO