CO129-497 - Public Offices - 1926 — Page 218

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importance of Hong Kong and to attract shipping direct to Canton has to yield to Chinese avarice and an urgent need

for funds.

Concerted action by the Powers could immediately render the boycott inoperative, but selfish interests are involved and Cantonese merchants experience no difficulty in finding light non-British cargo-boats prepared to take

Trade is Canton's products direct to Shanghai and Formosa. thus being diverted from Hong Kong some of which may perhaps never be recovered, but there is a limit beyond which this is commercially impossible. Canton cannot be approached by vessels of deep draught and Hong Kong must eventually regain most of its former trade.

The

5. Except for the satisfaction which the Russians must be feeling over the commercial depression in Hong Kong they can have no particular reason to rejoice over the progress which Bolshevism has made in Southern China. Kwantung countryside is no-where near being Bolshevist, and the resemblance to the Russian Soviet form of Government is

Those provided by the Central Executive at Canton itself. Europeans who know the country are unanimously of opinion that the Bolshevik creed can find no acceptance among the agricultural masses. Southern China is a land of peasant proprietors who are perfectly satisfied, and have been so for generations, with existing conditions. A Missionary from Kwangsi informs me that a good deal of Red propaganda

is noticeable in the interior, but that it is far from popular, though people are afraid to combat it openly.

1

There is a tendency to accept without question the

statement that a chaotic China will fall an easy prey to

Bolshevik propaganda, but one ought first to consider the

tremendous obstacles which have to be surmounted before such

a result can be achieved. We have yet to learn that the

Russian