CO129-499-2 Canton situation- governor's despatches 15-1-1927 - 4-2-1927 — Page 138

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assumed office on the 17th January and informed the

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vernacular press that he would "observe the labour policy

laid down by the Kuomintang". It is, therefore, clear

that the victory has gone to the extremists in the Kuamin-

tang at Canton.

4.

Another lurid example of the failure of the

Nationalist Government to control its extreme element is

furnished by the horrifying events in connection with the

Spanish Mission at Foochow. I enclose an extract from the

Enclo.No. Z local English press giving the facts as related by the

survivors.

5.

The figures as to revenue collection given in

enclosure (d) show that, notwithstanding special relief

in respect of the rates on empty flats, reduction of

contract fees and other concessions, the taxpayers of the Colony were in 1926 defaulters to an amount more than three times as great as in 1924. This in no way indicates resistance to taxation. It is the result of sheer inability to find ready money.

6.

I may add that I do not propose to ask His Maejsty's Consul General to enter a protest against the occurrence recorded in enclosure (e). The boat in which

the man was arrested furnishes a service through British waters between two points in Chinese Territory, and a pro- test (apart from being useless) would merely provide the Canton authorities with an opportunity to inveigh against our "Imperialistic" control of Mirs Bay. The incident is,

however, a noteworthy comment on the Nationalist claim to have established a modern judicial system.

I have the honour to be,

Sir,

sir.

Your most obedient, humble servant,

Glements

Governor, &c.