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

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except as mediators, who would use their influence

to prevent the Strike Committee from putting forward

any unreasonable demands: and indeed the result of

Mr. Fletcher's visit has been to eliminate from

future discussion any matter except the payment of a

lump sum of money by employers to strikers as a

quid pro quo

for ending the boycott, from which

admittedly the Strike Committee derives by means of

its strike pickets a considerable income.

3.

It is obvious that the Hongkong

Government cannot participate in negotiations for a

settlement on these lines, but the question for

decision is whether or not the Hongkong Government

would be justified in obstructing such a settlement.

I discussed the whole subject very fully with the

Executive Council this morning, hir. Chow Shou-son,

Mr. R.H.Kotewall and lur. D.G.M.Bernard being also

present by my invitation. In stating the case to the Executive Council I laid emphasis on the following

objections to the proposed bargain:-

(a) It will not eliminate Russian Bolshevik

influence from Kuang-tung. You will see from Mr.

Fletcher's report that the introduction of Russians

as advisers to the Canton Government was apparently

due to the refusal of H.B.M. Consul-General at

Canton to allow Dr. Sun Yat-sen to employ Canadians

for this purpose. The effect of this action was

to give Borodin, the Bolshevik emissary from

Moscow, who happened just then to be at Canton, an

unique opportunity for offering Br Sun the help of

Russian Officers as well as Russian money and

munitions. I trust that the very serious damage

to British interests which resulted from this

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unfortunate

1