CO129-498-5 Canton boycott- report on visit to Canton of representatives of the Hong Kong Chinese merchants... 6-1-1926 - 6-1-1926 — Page 24

SECRET.

Enclosure No.!

S.S"Lung Shan,'

11

The Honourable Mr. Chow Shou-Son

Gentlemen,

and Mr. R.H.Kotewall.

2nd January, 1926.

As one of the delegates appointed by the Chine: o

Merchants of Hongkong to negotiate with the Strike

Union, I have the honour to enclose the annexed

statement, containing an epitome of our work, by way

of report to yourselves, and, through you to the

Honourable the Secretary for Chinese Affairs.

I much regret that our Mission, as such, has

totally failed, but personally I venture to think

that our labours have not been entirely in vain, be- cause the knowledge and insight of the present sit-

uation in Canton which we gained from direct contact

with the interested parties should be of some use

to those who come after us, and the friendly

atmosphere we have created should be of service

hereafter.

As far as I can make out, the economic position

of Canton is sound. All the people whom I met were

emphatic and sincere in their admiration of the

present Administration. The Government seemed to

have achieved some measure of success in its endeavou.

to be a Government of the People and for the People.

I understand that for the first time for some years

the Government did not "borrow" one cont in connection

with the New Year. Thore is no doubt that the people

have complete confidence in the Government and are

gonorally contented.

I do not agree with Mr. C.C./u that the Canton

morchants arc indifferent as to the settlement, nor