CO129-493 - Governor Sir Clementi - 1926 [6-8] — Page 11

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requires early settlement and it is ordered that the

Ministry of Foreign Affairs shall take immediate steps to confer with all parties concerned in order to bring about a satisfactory termination.

Of these signatories the first named has already run away to Paris the second Shanghai and the last on the 1st June to Macao. Brenan saw Eugenechen so called Minister for Foreign Affairs on the 26th May and again on the 28th May with reference to boycott matters but without any tangible result. There is indication that the Canton Government is breaking up. As regards the oil monopoly Bell Asiatic Petroleum

Company suggests that the proposed substitution of tax

for oil monopoly likely to be little if any advantage

so long as the boycott continues. Trade between Canton

and Hong Kong referred to in my telegram of the 13th May

referred to the general trade conditions, both indirect

trade via Shanghai in non-British vessels and direct

trade between Hong Kong and Canton and vice versa both passenger and goods carried by daily steamboats or

junks or otherwise. As regards the extent to which the

daily service is used for trade purposes Chinese

passengers are now travelling more freely by the daily steamboats. This has brought about increased trade

between Canton and Hong Kong and vice versa and although

little or no cargo has been carried so far by the daily service fair quantities are being surreptitiously shipped by junks and devious routes which is the result

of the movements of the Chinese passengers referred to and the consequent restoration of confidence in

Hong Kong's position.