CO129-495 - Governor Sir Clementi - 1926 [11-12] — Page 70

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

Dated 5th November.

67

(Received Colonial Office 11.45.a.m. 5th November 1926)

Boycott situation.

Trade improving but position generally still very

critical. Surtax of 24 percent now being levied on all

imports and experts at Shunchun station by officers

sent by Canton Government.

3watow conditions reported restored to practically

normal.

Bell Commissioner of Customs at Canton informs me that

anti British economic severance extension comittee has

appointed investigation Committee of 300; forms have

been distributed to shops to fill in particulars of

British mods and after the old stock is exhiîusted no

more in to be sold; also that caryo boat træsportation

guild has issued ordersthat cargo boats must not handle cargo for principal British firma. Unless Canton Government puts a stop to ravi ing of anti British activities position will soon become dangerous. Con- ciliatory methods are useless in the circumstances and merely interpreted as weakness. Fear of active measures is only effective influence.

Again strongly urge that British position should not be compromised by taxation concessims likely to manoy other Fowers and provide further obst woles to co-opera-

tion without bringing any benefit.

Repeated to Peking No.30.