CO129-492 - Governor Sir Clementi - 1925 [12] - 1926 [1-5] — Page 317

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to the Canton Strike Committee, and considered its existence a danger to the Canton Government. He would be glad to see it disappear, and the anti- British boycott removed. He said, however, that the Canton Government was faced with a difficult problem: for there were some 40,000 unemployed labourers in Canton and from these the Strike picket organization was drawn. The problem was how

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to disband the organisation. I suggested to him that the only satisfactory means would be to find employment for them. I told him that under no circumstances would the Hongkong Government negotiate with the Canton Strike Committee, nor would the Hongkong Government pay compensation or strike pay to the Canton Strike Committee, neither was the Hongkong Government now prepared to countenance the payment of strike pay or compensation to the Canton Strike Committeo by European or Chinese merchants of Hongkong. The Hongkong Government was, howover, ready to assist the Canton Government in financing any projects for development in Kuang-tung which would provido labour for the workmen now unemployed, Mr. Sun Fo then referred to the question of the loop line railway at Canton, and I told him that it was a project in which the Hon kon; Government took a great interest, and which we should be glad to further to the best of our ability. I told him of the negotiations now ponding between ourselves and Canton, and of the proposal that the formal con- ference should bo precoded by informal conversations, mentioning that I had it in mind to send Mr. Komp to Canton to initiate such convorsations. Ho

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