CO129-499-2 Canton situation- governor's despatches 15-1-1927 - 4-2-1927 — Page 50

- 2

-

50

The granting of Government monopolies in what were previously "Free Trades". There are now 35 articles in which no one can deal in Canton without a Government permit. Of these 5 are adsolute Government preserves, which are being farmed out. Nitrate of Soda come under the first class, and

Aluminium Fowder under the second.

The claim of the Canton Trade Unions to control the

terms under which an industry may be carried on, and to prevent by force of arms if necessary any breach of these conditions.

This is notorious, but to give only two instances we would mention the case of the Sincere Company, Canton, and the

Banks.

Sincere Campany, finding it impossible to continue business in Canton without incurring a loss, decided to close down. The employees forbade this, and threatened to occupy the building, selling the goods for their own account. Unable to get any redress from the Canton Government, Sincere have continued to carry on with their existing stocks.

As a second instance we would bring to your minds the case of the Banks. As this case still continues to be

reported in the papers we do not think it necessary to relate

details.

The fact is that the Government for their own

purposes fostered extreme Trade Unionism and now finds itself (either willingly or unwillingly) unable to control it.

This brings us to the point of difference between

members. So far we are all agreed that the tendency is Bolshevism and of the full complicity of the Government in it, whatever their first reasons may have been. We also agree

that there are two wings of the Government here, viz. a

Communist Wing and an Anti-Communist wing. We are not agreed as to the relative power of these wings.