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། ། ། ། ་།

PUBLIC RECORD OFFICE

سائسلسالسا

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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(c) "The Canton Government, as shown by the recent Customs incident, could put the strikers under control when- ever it wished" (see paragraph 4 (a)).

(d) "The Strike Committee had received altogether (apart from grants made by the Canton Government for food and clothing) a little over $1,000,000. About $600,000 was received from Chinese abroad, and about $400,000 was raised by an impost on house-rents in Canton. There were now no surplus funds in Canton, and the strikers depended entirely upon the Government grant" (see paragrapli 8).

6. It is probably safe to infer from the information now at our disposal that the sequence of recent events has been as follows. The approach of Chinese New Year (13th February) found the Canton Strike Committee short of funds. In desperation the strike pickets, who until then had respected the rights and privi- leges of the Chinese Maritime Customs, seized cargo at Canton and held it up to ransom before it had been examined by, and paid duty to, the Customs Authorities. Thus was provoked the so- called Customs incident" which resulted in the loading and discharge of all vessels being suspended at Canton from the 21st to the 26th February. An effective boycott of Canton was thus instituted for a few days, and this fact must have seriously alarmed Mr. Wong Tseng-wai. Hence his letter of the 23rd February to Sir Shou-son Chow and Dr. Kotewall. Mr. Wong Tseng-wai has probably realised the danger of allowing the Canton Strike Committee to function as an imperium in imperio at Canton. He also finds that the dole to strikers and unemployed is an incon- venient drain on public funds. But he does not wish to be too hard on the strikers because the movement was nation-wide and was founded on patriotic grounds (see paragraph 4 (a) of joint memorandum). Accordingly he is making another effort to induce Hongkong to find money wherewith he may buy off and so dis- band the strike organisation at Canton.

For this purpose

"he would very much like to meet the two Chinese members of Council in Canton, so that he could have a thorough discussion with them and tell them, at first hand, in what way he could assist in bring- ing about a satisfactory settlement " (sec paragraph 3 of joint memorandum). He noted that the Canton Strike Committee claims $14,000,000, whereas the sum mentioned by the Chinese delegates from Hongkong who went to Canton on the 30th December was $300,000, and he knows that the difference between these two figures is so great as to make further discussion of them useless. He is, therefore, inclined to take up the suggestion that a loan should be made from the Hongkong Government to the Canton Government for the construction of railways, hoping to be allowed to apply a portion of that loan for paying off strikers. The mission of Mr. Fu Peng-sheung to meet Sir Shou- son Chow and Dr. Kotewall at Macao was evidently an attempt of Mr. Wong Tseng-wai to test the practicability of a settlement on these lines.

7. From the point of view of the Hongkong Government, if there is to be an attempt at negotiation, the first step necessary is

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the consent of the Canton Government to appoint delegates to confer with delegates appointed by the Hongkong Government. Owing chiefly to the influence of Mr. C. C. Wu, the Canton Government has hitherto refused to negotiate, and it is interest- ing to note the admission of Mr. Fu Peng-sheung, made in strict confidence, that it was a pity that Mr. C. C. Wu had advised the Canton Government not to appoint officials of equal standing, to negotiate with officials appointed by the Hongkong Government, but to act as mediators only" (see paragraph 3(C) of joint memorandum). It appears, however, from the 10th para- graph of the joint memorandum that Mr. Fu Peng-sheung received no definite instructions on this point in connection with his mission to Macao-“ owing probably to an oversight," he said-and the most he could agree to was to ask Mr. Wong Tseng-wai about the matter on his return to Canton and then in- form Sir Shou-son Chow and Dr. Kotewall.

8. On the 5th March Sir Shou-son Chow and Dr. Kotewall had an interview with me, at which Mr. Hallifax, Mr. Kemp and Mr. Tratman were again present, and we discussed what further action should be taken. The two Chinese members of Legislative Council were anxious that the Hongkong Government should follow up their informal and initial conversation with Mr. Fu Peng-sheung in a spirit of conciliation; and they said that Mr. Fu Peng-sheung had expressed a hope that I would see him in Hongkong and that thereafter they might go to Canton for an informal conversation with Mr. Wong Tseng-wai. They believed that by this means it would be possible to induce the Canton Government to enter upori formal negotiations with the Hongkong Government. We agreed that an attempt should be made on these lines, and later in the day Sir Shou-son Chow and Dr. Kotewall despatched to Mr. Fu Peng-sheung the letter of which I enclose a copy, and which is to the effect that I would be pleased to see him and to inform him personally of my views as to the suggestion of a loan for purposes of commercial developments in Kuang-tung which may be beneficial to Canton and Hongkong. and that this conversation, if it proved to be satisfactory, could be continued in Canton by Sir Shou-son Chow and Dr. Kotewall with Mr. Wong Tseng-wai.

9. As regards the suggestion of a loan, I may explain that, be- fore Mr. Fletcher left Hongkong on the 20th December to visit Canton, I asked him in his conversations with the Canton officials to introduce this subject in an entirely unofficial manner and to find out what they thought of it. Mr. Fletcher did this; and you will find on page 12 of his report, which is enclosed in my secret despatch of the 24th December,* the following passage: -" ! pointed out that, if the strikers got a payment but no work, they would be a nuisance both to Canton and Hongkong. I had no authority whatever from the Governor, but suppose the Hongkong Government made a loan to the Canton Government for the pur- pose of completing the Canton-Hankow railway, a project desired by both, the labourers could then be employed. Mr. C. C. Wu at

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