CO129-499-2 Canton situation- governor's despatches 15-1-1927 - 4-2-1927 — Page 57

ENCLOSURE NO. 41

57

Honourable Secretary for Chinese Affairs,

I

X

X

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I have taken the views of Mr. Li Tse-fong,

Manager of the Bank of East Asia, Ltd., and of Mr. Li

Sing-kue, an influential Director of the Bank of Canton,

Ltd., Mr. Li Tse-fong considers the terms "not unreasonable",

but he tells me in confidence that as more and worse demands

may come later, his Bank may eventually close its branch in

Canton.

Mr. Li Sing-kue says that the terms were unfair

to the banks, but the banks had to accept them on the threat

of lir. Chan Foo-muk, the Commissioner of the Peasants and

Workmen Bureau, to place the business of the banks under

Government control. The terms would have been worse but for

the intercession of General Li Chai-sum who considered that

the original demands were calculated to cause an economic

disturbance in Kwongtung.

My own views are that the settlement was a

victory for the bank employees, gained with the backing of

Chan Foo-muk, and that soon or late the original demands would be renewed unless the present régime disappeared from

the Province.

sd. R.H. Kotewall.

22nd December, 1926.