CO129-497 - Public Offices - 1926 — Page 215

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in Canton that the strangle-hold on Hong Kong is not to be relaxed, but the time has not yet come when Canton as a commercial centre can exist independently of Hong Kong, and there must be many even in the Cantonese Goverment who regret that the opportunity for a return to normal commercial relationships has been ignored.

At the present moment there is dual control at Canton. The National Goverment is responsible for the administration of the City and the province, but the conduct of the boycott is entirely in the hands of the Strike Committee, which takes its cue from the Soviet That the Representatives, chief of whom is Borodin.

Strike Committee has considerable power even in extraneous matters is evident from the fact that a few days ago, if my information is correct, it successfully withstood an official proposal to accord a public funeral to a distinguished Chinese Christian gentleman who had just died.

The Russian official who passes under the name

of Borodin is the Soviet Adviser to the National Government of Canton; there is no reason to suppose that he wields any executive power or acts otherwise than as an adviser. In fact, it is more than likely that the Canton goverment, though grateful to the Russians for the assistance, and acutely conscious of the fact that Russia, alans of all the European Powers, treats the Chinese as equals, would be glad to see less of the Reds, and regards

Its its debt to Russia as an embarrasing obligation. local war-lord Cheung Kai Shek, who defeated the Yunnanese, is probably not in a sufficiently strong position to bring about any dramatic change in the situation. The Reds, fearing lest a settlement of the boycott may render nugatory their efforts to cripple

British trade in Hong Kong, are reported to have approached

him