CO129-492 - Governor Sir Clementi - 1925 [12] - 1926 [1-5] — Page 23

BOYCOTT OF HONG KONG.

(FROM OUR COBEESPONDENT.)

HONG KONG, JAE. 4.

The Hong-kong delegates who had gone to Canton to negotiate for a cessa- tion of the boycott and the strike have returned, having reached a deadlock. Although it was understood

that political matters were not to be discussed the Canton strike committee insisted on including them. The strikers, who domi- nate the Canton Government, apparently are influenced by the Anglophobes and by the trade interests which are benefited by the boycott.

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Paraphrase telegram from the Governor of Hong Kong to the Secretary of State for the Colonies.

Dated 4th January, 1926,

(Received, Colonial Office,5,2 p.m.4th January, 1926.).

Times

Jan 5

Secret.

Canton situation. On 2nd January the

representatives of Hong Kong Chinese merchants

returned from Canton, I regret to say that owing

to the obstructive tactics of the present Canton

Government their mission was a complete failure. The

chief offender was C. C. Wu who contrary to the

understanding reached with Fletcher prevented the

delegation from even initiating negotiations with the

Strike Committee. This shows clearly that not only

has the boycott the support of the present Canton Government but that the latter only wishes to end it on terms humiliating to Great Britain. Acceptance of such terms would of course react still more unfavourabl; on British interests in China than the present boycott. No settlement can now be anticipated before the Chinese New Year, February 13th. I shall do my best to mitigate financial situation by use of trade loan but I fear that it is likely to become increasingly grave.\ Neither I nor Executive Council who concur in my view can see any solution but to hold out until either laps of time and the increasing inconvenience to the Canton authorities of tolerating an imperium in imperio bring about the collapse of the boycott organization, or unt some hostile Chinese General overthrows the present Canton Goverment, a contingency which appears unlikel; at present.

CH: