CO129-495 - Governor Sir Clementi - 1926 [11-12] — Page 74

2

November.

unclo No.7(7) Translation of a notice issued by the

21123

Boarding House Employees Guild of Kuang-tung,

and published in the Kwok Wa Po on the 27th

October.

2.

As I reported in my telegram of the 13th November, the outlook is distinctly worse than it was a week ago, the anti-British elements

appear to be controlling the situation in Canton and the Province generally, and the prospects of a restoration of friendly relationships are less favourable. Movement of goods has practically ceased and though there is a large volume of passen-

ger traffic by river, it is almost entirely confined

to Chinese river boats. Through traffic by railway

between Kowloon and Canton is being maintained with- out incident, but the number of passengers is small and there are no goods.

3.

So long as the political and military successes of the Southerners in their Expedition in the Yangtze Valley continue, I see little hope of improvement in the position as it affects Hong

Kong.

4.

The Finance Ministry of the Nationalist Government at Canton has published a notification that, in accordance with the procedure of the Maritime Customs collecting the "Tamine Relief Surtax, the new Internal Taxes Bureau will from the 1st November collect a one-tenth surtax on all imports and exports for relief purposes in the provinces of Hupah and Kiangsi+ and His Majestyfs

71

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