CO129-448 - Governor Sir May - 1918 [4-6] — Page 397

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Sonclosure 4.

EXTRACT FROM CANTON INTELLIGENCE REPORT.

for March Quarter, 1918.

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Relations with Chinese Officials.

Early in January the Hongkong Government brought to our notice the fact that an agreement was on the point of being signed by a Mr. Weymouth representing the Crucible Steel Company of Ameri- ca and the Provincial Government whereunder the latter proposed to commandeer the entire production of wolfram in the province and

make monthly deliveries to the former. Representations against

this monopoly were successfully made to the Consul General for the United States of America and the Commissioner of Foreign Affairs.

A modified form of this scheme has subsequently been actual- ly put in force. A Chinese syndicate has been given the sole right of purchasing from the producers all wolfram produced in certain

districts of the East and North Rivers, in consideration of which

85 per 100 piculs is paid to the Provincial Exchequer. This syn- dicate has concluded an agreement with a British firm, the Eastern

Tungsten Co., Ltd., whose Head Office is in Kuala Lumpur, for the

sale of the whole output. The agreement was brought to this Office

to be attested when the facts came out and attestation was refused.

No representations have yet been made by other British firms in- commoded by this equally irregular monopoly, and so there has been no occasion to lodge a protest with the Chinese Authorities.

Another wolfram case occurred at Swabue which is the natur-

al outlet for a wolfram district and where the local officials are

anxious to make hay while the sun shines. Mr. Cruz of the British

firm of Cruz and Co., Hongkong, proceeded to Swabue to buy wolfram, and after a time, having refused to pay the squeeze demanded by the local military officer and the official (self styled "Taung Pan") in charge of the native Customs House, his shipments were seized and a proclamation was issued by the "Tsung Pen" stating that Mr.

Crug