CO129-448 - Governor Sir May - 1918 [4-6] — Page 394

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released. As it would have been inexpedient to have appeared even indirectly to endorse the legality of such a levy, by writing the letter asked for, I did not do so, but instead addressed a note to the Civil Governor pointing out that, quite apart from the fact that no sufficient notice of the coming into force of the new regulation had been given, transit passes once issued must be respected, and requesting him accordingly to give instructions to have the ore released, and such I learn were actually issued. In the meantime in order to avoid delay those concerned paid this irregular charge under protest, only to find that on arrival at Walchow the ore was again held up, and an additional $10.00 per picul demanded by the military representative of Ch'en Chiung ming, Defence Commissioner for Ch'aochou and district, as a contri- -bution towards his particular military expenses. It will have been gathered from the reports furnished by His Majesty's] Consul at Swatow how very far reaching is the sweep of the

net of this officer, and, as it would appear ever to become

wider, annoyance and pecuniary loss must result for those farher west, who made their calculations without taking its

operations into account. It must for instance prove an inconvenienge embarrassment to the working of a monopoly in

respect of the sale of wolfram granted by the Canton Treasury

to a certain Fu min Company, in which the Commissioner for

Foreign Affairs and other local officials are said to be

interested. Mr. Ch'en at an interview, which an American

buyer of wolfram had with him at Swatow, states that he will

allow no wolfram ore to leave the district unless he gets some $70 or $80 a picul. (The present market value is roughly $60

a picul and I believe cost of production to be about $30 per

picul). To this the answer was that on those terms he could

keep his ore, and I have advised the principal British buyers

to join for the time being with their competitore in resisting

these outrageous demands and in boycotting the military clique,

In