CO129-392 - Governor Sir May - 1912 [9-10] — Page 199

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CONFIDENTIA L.

closure

Sir,

C.O.

34364

187

REC

REG 30 OCT 12)

GOVERNMENT HOUSE.

HONGKONG. 4th. October, 1912.

29319

In continuation of my Confidential Despatch of the 16th. of August, I have the honour to inform you that under date of the 4th. ultimo a paragraph (copy translation enclosed) appeared in one of the local Chinese newspapers to the effect that owing to various difficulties the establishment of the Canton and Hongkong Co-operative Financial Company had been abandoned.

2.

I have heard nothing more of this project. During the past month strenuous efforts have been made by the Canton Government to re-habilitate their note issue. The failure to obtain subscriptions, in aid of the Pro- -vincial finances, both in Hongkong and in the Province rendered the situation acute, and it appears that the Provincial Treasury had in contemplation a scheme for the issue of fifty cents and one dollar notes and a partial redemption of the larger notes with them, in order apparently to spread the loss. With this object in view the plant used in the printing of the present issue had been brought from Shanghai. But it was realised, as I am informed, that the situation was becoming desperate and the attitude of General Lung Chai-Kwong and his men had already emphasised this point. With $10 a month nominal wages the men had to pay 20% as a forced patriotic contribution; a further 20% in the exchange of their notes for silver (20 cent pieces) for there was no longer

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HE RIGHT HONOURABLE

LEWIS HARCOURT, M.P.,

&C..

&c.,

&c...

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