CO129-448 - Governor Sir May - 1918 [4-6] — Page 389

COPY.

Enclosure 1.

Hon. Colonial Secretary,

C.O

386

34255

REC REG 12 JUL 18)

I have discussed the position with Mr. Wey- -mouth, Mr. Fritz (who represents Mr. Richardson of Canton), Mr. Kew, Mr. Yamasaki (M.B.K.) and Mr. Wong Sui Hing (Swee Kee). The facts as regards the producing areas sem to be that in the 8.E. area of which Wai Chau is the centre General Chan Kwing Ming is de facto ruler and he will allow no wol- -fram to move from his district until it has contributed 10 per picul to his war-chest. This is done in defiance of the Civil Government at Canton, which is itself levying a tax of 85 per picul on all wolfram passing out of the East River besides the 2% transit" tax mentioned in H. M. Consul- -General's letter of the 29th. April, 1918. The result of this is that no wolfram is moving by this route except clandestinely.

The supplies from the North River areas (Lok Cheung &c) are paying the Treasury's levy of 85 per picul only. These charges are quite distinct from the recognised Likin and Customs Export duty of 5% ad valorem.

It is not clear whether the "Fu Min Co."

(Fuk Man Kung Sz) is actually operating yet, nor whether it is a genuine commercial enterprise or merely a convenient disguise for a greedy officialdom. I am inclined to think

that the latter is the case and that the 5 tax is the

monopoly's.

General Chan Kwing Ming's action accounts for the fact that the Hongkong restrictions did not, as was

anticipated, divert the whole of the wolfram trade to the

Swatow-Shanghai route. He has seized wolfram belonging

to Foreigners in lighters and godoms at Wai Chau and there

seems no particular reason why he should not do the same

with