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 42

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5.S!Lung Shan,"

The Honourable Mr. Chow Shou-Son

and Mr. R.H.Kotewall.

Gentlemen,

2nd January, 1926.

As one of the delegates appointed by the Chines 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 cent in connection with the New Year. Thore is no doubt that the people havo completo confidence in the Government and are generally contented.

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

merchants arc indifferent as to the settlement, nor