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You 23561/36
As already reported in my telegram of the
er*'
67
22nd December the owners of the British river steamers
have found themselves unable to continue their resistance
Canton
to the demands of the Seamen's Union and have accordingly
^
discharged or arranged to discharge their strike-breaking crews, and to engage crews supplied by the Unions.
Details of the arrangements made are given in the en-
Inclo. No 10 closed freport
And closed report from the Hong Kong, Canton & Macao Steam- boat Company. The Companies concerned pointed out
that the immediate loss of revenue, though extremely
serious, was by no means the only factor in the case. The strike of 1922 showed the power of the Seamen's Union and that power has been enormously increased by the prominent part played by this Union in the rise of the Nationalist Government. At the same time the Canton Soviet had plainly intimated that it would not take any steps to suppress picketing by this particular Union. The Companies, therefore, could entertain no hope of any early victory over the Union, and in the meantime rival companies were running unmolested and undermining their share in the goodwill of the river traffic. It must
her Cent. further be borne in mind that about 70% of the share-
Rons
and
holders of the Hong, Canton & Macao Steamboat Company are Chinese and, although many of these might relish
surrender as little as their British colleagues, the Directorate would perhaps, if the struggle had continued, have been faced with a demand for the transfer of the
Company's fleet to the Chinese flag.
4.
For these reasons a subsidy from Colonial funds offered no real solution of the problem I then endeavour ed to arrange that the profits of the unmolested vessels of the local Chinese companies should be pooled and a share allotted to the British Companies, the proprietors of the former having professed a wish to break the
723561/26; hot printed. thot pamited.
power
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