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to get back into normal channels. Wider facilities are also being given for the export to Canton and the Delta of the other prohibited articles, and opportunities are sought to bargain for the sending of a stated commodity on
the condition that food-stuffs are sent in return. For
example the General in charge at Kongmoon, who is strongly
opposed to the Canton communists, has agreed to do what he
can to supply Chinese produce in exchange for coal for the
Sanning Railway, on the takings of which he is largely
dependent for pay for his soldiers. The trade which is
being carried on is very small and precarious as the river
steamers are not allowed to run and junks, which are the
sole means of transport, are liable to the exactions of
soldiers, pirates, and strikers.
5.
A number of ships under Russian, Norwegian,
German, and other flags are running direct to Canton
carrying cargoes of rice, kerosene, and other commodities.
The censorship of Chinese telegrams has been productive of
much information regarding the movements of these dips and
the financing of their cargoes, and steps are being taken
to put difficulties in the way of the trade by stopping
the telegrams. One or two of the ships have called in at
Hongkong to pick up pilots, and they have been allowed to
proceed in spite of the fact that they have been carrying
goods the export of which is prohibited.
6.
I referred in the concluding paragraph of
my despatch of the 24th July to the very serious position
of affairs regarding the general trade of the Colony, and
I have today transmitted to you a telegram drafted by the
Committee of the General Chamber of Commerce. I met the
Committee and discussed the matter with them before the
telegram was despatched. The financial crisis has been
aggravated
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