CO129-499-2 Canton situation- governor's despatches 15-1-1927 - 4-2-1927 — Page 136

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CANTON:

There is a fairly large movement of freight from

Shanghai to Canton, but very little in the reverse direction,

owing to conditions in the North.

GENERAL:

There is at present an active movement of rice from

Hong Kong to Canton. Prior to June, 1926, Canton-Hong Kong

Chinese rice merchants maintained their principal establish-

ments in Hong Kong and carried on the main part of their

business in the Colony. when the trouble began they trans-

ferred the active part of their business to Canton, direct

charters being made with Bangkok and Saigon; in other words,

Hong Kong lost its place as the "Rice Mart of South China".

Now, however, owing to the burden of taxation and continual

labour troubles in Canton the rice merchants have reverted

to their former methods of doing business and maintaine✨ no

more than a signboard and a small space in Canton. Many

indeed have closed down entirely in Canton and have not even

a sign, with a view to avoiding the local taxation.

Before 1925, the transhipment of rice from Hong Kong

to Canton was largely effected by junk, but this traffic is

now greatly suspended owing to fear of piracy. The river steam

ers are unable to carry much of this cargo because, if heavily

laden, they would be compelled to wait perhaps twelve hours

for high tide to cross the Tai Shek Barrier. Coasters,

principally British, are now handling this cargo.

There was a movement in 1923 to get "urgently

necessary" dredging work done at the Tai Shek Barrier and since

that date, as nothing whatever has been done, there has been

considerable further silting.

HONG KONG, 18th January, 1927.

sd. M.F. KEY.

Secretary.