CO129-498-3 Canton boycott- prospects of restoring normal conditions 20-12-1925 - 24-12-1925 — Page 13

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could carry on indefinitely. Mr. Sung was not prepared to say that the Government would tolerate the levying

of squeeze or that subscriptions would continue to to

come from abroad, but still there must be no mistake.

The necessary funds would never fail (I gained a

strong impression that Mr. Sung wished to convey a hint

that the Government was subsidising the strikers).

If no settlement was reached, the strike

would not gradually peter out, at least not for a long

time to come. The organisation required to keep it

going was not large nor particularly difficult to

maintain, and the strikers were very much in earnest

and were determined to continue the boycott until a

satisfactory settlement was come to. Canton was becoming accustomed to boycott conditions and was adapting herself to them. Big interests were growing up among the merchants which were strongly opposed to an

arrangement. This was particularly the case with regad to shipping, and among merchants who had established

with Shanghai and elsewhere a new trade which had formerly been with Hongkong. Canton was finding that in various ways, especially in coasting shipping, she

could get along without Hongkong.

I put to Mr. Sung the point of view of Hongkong. The Hongkong merchant claimed that labour had no grievance of any sort against himself or any Hongkong conditions, and had gone on strike on account

of circumstances which it was quite out of the power of anyone in Hongkong to alter or control. Law our had done its utmost to ruin Hongkong, and it was sheer blackmail to demand a money payment as a condition of terminating the boycott. The merchants could not

be compelled to pay. Many of them would refuse absolutely to do so, and even if the merchants' representatives

should