aggravated by the fact that during the past two or thre30
years there has been much over-speculation in landed property
and in shares in local companies. The market, which had been
gradually weakening for some time, was brought down with a
crash when the strike commenced, and the situation became one
of extreme difficulty owing to the temporary closing of the native banks, and owing also to the sudden withdrawal by the
foreign banks of a large part of the customary facilities
for financing business transactions. The resulting financial
stringency has been gravely accentuated by the boycott, which
has rendered it impossible for the merchant to turn his
importa into money or to obtain the exports which he has
contracted to ship. There are many cases of men, who before
the crisis were possessed of considerable wealth, and now
find it a matter of great difficulty to raise a few hundred
dollars in cash. It should be clearly understood that the boycott of Hongkong by Canton is a matter quite distinct and separate from the boycott of British trade in North Chine. The Communits in Canton, under their Russian leadership, are
determined to destroy Hongkong, and, as much the greater part of Hongkong's trade is with Canton, it is difficult to see
how the situation is to be met, unless means are devised to
drive the communists out. A large majority of the merchants
and better informed Chinese, both in Hongkong and in Canton,
would, I think, welcome any actiên which would have this generally desired result, more especially if it should be possible in the first instance by diplomatic action to make it clear that such action was directed against the bolshevistic administration of Canton and not against China or the Chinese. In this connection it may be noted that the Peking Goverment has recently invoked the good offices of this Government in the matter of the coaling in Hongkong of certain gunboats which are being sent to Hoihow to assist General Tang Pun-yan
in
No comments yet.
Private notes are available after approval.