2
2
the Union learnt that the Company's Directors had
confirmed the attitude taken up by Mr. Arnold at
the conference of the 15th November, picketing was
re-imposed and is still in force. Informal nego- tiations are, however, continuing, and in view of the fact that, as the improved cargo returns show, the cargo workers are no longer supporting the Union, the Company are not without hope that more acceptable terms of settlement may be forthcoming.
The Hong Kong and Shanghai Banking Cor- poration reports a slight general improvement in deliveries of piece-goods and similar cargo for which the neighbouring provinces of China form the
market.
3.
4.
39
It has now apparently been decided by the Political Council of the Kuo-min-tang that its head- quarters and the seat of the Nationalist Government shall be removed from Canton to Wuchang. The first party of high officials headed by General Tam Yen Kai, Chairman of that Government, is reported to be leaving Canton for the new capital on the 5th December, and it is to be anticipated that Canton and Kuang-tung generally, with the exception of the military schools and similar establishments belonging to the central organization of the party, will shortly be under the control of a purely provincial administration headed by General Li Chai-sam.
5.
Labour in Canton continues to act in a verv high-handed manner. In addition to her picketing of the British river steamers the Seamen's Union has instituted a boycott of the China Merchants' Steam Navigation Company, Limited, a Chinese concern, on the ground that this Company has assisted Marshal Sun Ch'uan-fang in his operations against the Nationalist
forces
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