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 9

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objections to the proposed bargain set out in the third paragraph of my secret despatch dated the 24th December. As I wrote, at the close of my secret despatch dated the 23rd December, all official opinion in Hongkong is emphatically against making any such payment. But we felt that the burden of a war of attrition would fall mainly upon the Hongkong merchants, both Chinese and European, and that if these merchants preferred to make a speculative payment in the hope of ending the boycott rather than suffer their present loss of trade, the Hongkong Government would not be justified in obstructing such a settlement. This was also the unanimous opinion of the Executive Council as well as of the Hongkong Chinese merchants. I must, however, confess that

I am somewhat relieved that owing to the action

taken by the Canton Government and the Strike

Committee, a settlement by payment of blackmail has

been prevented.

9.

This despatch confirms and amplifies

my telegram of the 4th January.

I have the honour to be,

Sir,

Your most obedient humble servant,

Governor,&c.

age 10

age 10