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$.
It further appeared in the course of the
final negotiations for a settlement that the man had a well-
founded if somewhat inarticulate complaint that the Suropean owners were out of touch with and without understanding of
the Chinese whom they employed, one result of which was that the men were liable to be "squeezed" by the middlemen through whom they were engaged.
10.
There was another circumstance which may have
had its influence upon the situation. For reasons which it
is unnecessary to analyse there had been for some months a
continuing decrease in the regular traffic in illicit opium, with its consequent effect upon the seamen's pockets. It is of interest to record that the stoppage of steamer communi-
cation brought about by the strike resulted at once in a
large increase in the Government revenue derived from opium, liquor, and tobacco duties. The smuggling of opium has
always been a perquisite of the ship's crew, but it is
probable that their interest in the illicit liquor and tobacco traffic is confined to some small recompense for
their silence regarding the operations of others.
It may
be mentioned in this connection that it is a well establish-
ed fact that on certain ships, notably those which give the
opportunity of carrying opium and liquor to and arms from America, the men pay considerable sums to become members of
the crew.
11.
The Union's reply to the shipowners' offer
was a more reiteration of its original demands, and the shipowners accordingly cancelled their figures, which had
been arrived at somewhat hastily and, in some cases, without
full reference to principals in Europe and America. The
offer of arbitration reained open.
12.
On the 23rd January the Secretary for Chinese
Affairs went to Canton with the object of getting into
touch with Dr. Jamieson, H. M. Consul-General, more
especially in connection with the political influences which
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