CO129-497 - Public Offices - 1926 — Page 232

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not taking kindly to the Communist cult. The Chinese Communist Party, though directly represented on the

IKKI, is not a large or a powerful body; even in

Canton, where its influence is supposed to be very

great, its name, so far as I remember, was not even

once mentioned to me. Unfortunately there is no class

of person which has the moral courage publicly to

announce its detestation of Communist teachings and of

Communist exploitation of the Kuo Min Tang.

6. There is little in my previous report

which I wish to modify in the light of fresh information

but perhaps I treated the Canton-Hong Kong struggle

somewhat too optimistically. Advices from Canton

appear to indicate that quite a good deal of business

is being done there and that Canton is finding that

it is less dependent on Hong Kong than it imagined.

The danger of the continuance of the boycott seems to

be that in the economic ruin of Hong Kong China will

have an object lesson in the efficacy of Russian

methods.

7. As I am advised that visits to Nanking and

Hankow are unnecessary, I shall go straight to Teintsin

and Peking.

h

Lio

Yours sincerely,

(Sd.) V.W. Smith.

D. Petrie, Esq., CIE., CVO., CBE.

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