C.O.
6
this same agent, who has sinced amassed a fortune in the business, was formerly in the employ of a British firm, and left them because the firm refused to supply him with funds for "secret commissions."
On the other hand, it is undoubtedly true that British firms do not obtain orders for arms and ammunition because they are unable or unwilling to allow the long credits required by the Chinese. This is habitually done by the Germans who go a step further and actually advance the money to pay for the order!
The following incident, which came under my notice when in charge of the Consulate at Wuchow, is typical of the procedure adopted in many cases :—
In June 1903, the Governor of Kuangsi, at his wits' end to replenish the Provincial Treasury, borrowed 300,000 taels from Messrs. Carlowitz and Co. at 8
per cent.; of this he received 150,000 taels in cash, 80,000 taels in arms and ammunition, and 70,000 taels in minting machinery.
It is obvious that the German firms who conduct their business in this way must often experience considerable difficulty in obtaining payment from the Chinese authorities, and it is when this happens that the German Consul is usually able to render his nationals effective assistance. Moreover, the failure on the part of the Chinese authorities to settle at due date usually enables their German creditors to secure a fresh order in return for an extension of time,
I append a list showing the amount of arms and ammunition imported from Hong Kong for official purposes during a period of twelve months.
I am informed that the arms business has been dull for some months past.
I have, &c.
(Signed)
HARRY H. FOX.
Inclosure & in No. 1.
ARMS and Ammunition imported into Canton during the year 1908 (exclusive of
Nature of Goods Imported.
75,000 Mauser bullets.
Sporting Guns, &c.).
Date.
By whom Imported.
1908.
January February
7
Governor of Kuangei
Carlowitz and Co,
March
March
20
Mareli April
5
21
April
27
May June
16
9
Arnhold Karberg and Co. Carlowitz and Co.
Arnhold Karberg and Co.
Arnhold Karberg and Co.
Bielfeld and Son
Arnhold Karberg and Co.
Various Hong Kong Chinese
firms
Schultz and Co.
.
4 Krupp guns, 1 Maxim gun and ammunition, and
29 cases of caps.
2,000 five-chambered revolvers.
5,000 nine-repeating Mausers, 2,000 six-chambered
revolvers, and 200,000 cartridges.
5.000 nine-shot Mauser rifles.
25 revolvers (smokeless powder) and 10,000 rounds
of ammunition; 100 seven-shot revolvers (smoke- less powder) and 50,000 rounds; 50 eight-shot revolvers (smokeless powder) and 20,000 rounds. 20 Rekyl rifles, 100,000 cartridges; 10 loading
apparatus, and 800 magazines.
50,000 cartridges for Mauser pistols.
1,831 muskets; 698 rilles; 142 pistols; 401 re
volvers; 2,752 bayonets; 2 cases bullets; 1 case guns: 78 cases cartridges; 12 five-shot smoke- less Manser rifles; 6 long Martini-Henry rifles: 367 Martly rities; 80 Mauser rifles; 60 No. 38 five-shot carbine; 10 sundry quick-firing guns; 16 sundry six-shot revolvers; 128 percussion
caps.
1 Danish machine-gun and 10,000 rounds.
The Kwong Hsing firm of Hong 272 nine shot Mauser rifles; 15 sundry rifies:
Koug
30 muskets; 160 revolvers, and 110,000 car- iridges. 5,000 Manser rifles.
June July
20
27
August 13
September 22
Carlowitz and Co. Carlowitz and Co.
October 8
Carlowitz and Co.
October
20
December 27
Sze Yik Grm.. Schultz and Co.
4 Maxin machine-guns on naval stand and 1,000
cartridges.
1 Mauser rifle with 160 cartridges; 14 revolvers and 1,400 cartridges; 1 Mauser carbine, Mod. 71; 1 Mauser carbine, Mod. 1907, and 35 cartridges : 1 Austrian rifle, end 1 sword.
408 single-shot Mauser rifles and 20,000 cartridges. 2,000 rifles and 2,000,000 rounds; 100 eight-
chambered revolvers and 50,000 cartridges.
This Document is the Property of His Britannic Majesty's Government.13949
126 RECR [March 26.] Rack 24 APR 09
CHINA TRADE,
CONFIDENTIAL.
[11542]
No. 1.
SECTION 1.
Colonial Office to Foreign Office.~(Received March 26.)
Sir,
Downing Street, March 25, 1909. I AM directed by the Secretary of State for the Colonies to transmit to you copy of a despatch from the Governor of Hong Kong, with inclosure, on the subject of the Japanese boycott in Hong Kong,
I am, &c.
(Signed)
Inclosure in No. 1.
FRANCIS J. S. HOPWOOD.
Governor Sir F. Lugard to the Earl of Crewe,
(Confidential.) My Lord,
Government House, Hong Kong, January 30, 1909. I HAVE the honour to acknowledge your Lordship's Confidential despatch of the 15th December, 1908, covering a letter from the Foreign Office having reference to the Japanese boycott.
2. Your Lordship has been informed in my Secret despatch of the 24th December, 1908, and in previous despatches of the action taken by this Government in conse- quence of the riot of the 2nd November. That outbreak together with certain outrages upon individuals which had preceded it were the first overt illegal acts committed by the Societies who supported the boycott, and they afforded this Government the first opportunity for dealing with the boycott as the proximate cause of the riots and outrages.
3. I was not slow, as your Lordship will have learnt from the despatches referred to, to seize this opportunity and to deal with several prominent persons of whose connection with the boycott there was evidence, apart from the question as to whether or not they had in any way been concerned with the riots, &c. Those measures were of so drastic a nature that they at one time seemed to imperil British trade. They were eagerly exploited by the boycott Societies of Canton, who had cleverly designed to shift the scene of their operations to this Colony, where they were less liable to reprisals from Japan.
4. I was prompted to this action, not merely in order to prevent a repetition of the riots and outrages, nor from a motive of friendship towards the ally of Great Britain (though, of course, both these objects had great weight), but primarily because I considered that the powerful Self-government Society of Canton (the "Jichi" Society referred to by the Japanese Chargé d'Affaires) had by its action in organizing the riot here made a bold bid for the domination of this Colony, which, if it passed unchallenged, might have far-reaching and disastrous consequences. Its immediate effect had been what its promoters anticipated. The Chinese merchants and traders of this Colony, who had become tired of the boycott and wished to end it, were at once brought to heel, and the circulars disseminated through the Colony threatening to cut off the ears of any one who did not obey the boycott rules of the Society produced a widespread terror, and it was evident that the Chinese were vying with each other in their protestations of support of the boycott.
5. The issue of the banishment orders against prominent leaders-and not against their mere tools--had an effect not less pronounced than the action of the Self- government Society had had. None of the leading Chinese merchants (other than British subjects) felt themselves safe. One came forward and declared his intention of selling Japanese goods, another voluntarily repudiated connection with the boycott by an advertisement in the press, the trade in Japanese "marine delicacies" and other goods at once increased notably. The Registrar-General reported that all acts of intimidation had entirely ceased, and I think that I am justified in assuming that the attempt of the Self-government Society of Canton to dictate to the Chinese of Hong Kong and to terrorize them into subservience was entirely frustrated. The
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