CO129-499-2 Canton situation- governor's despatches 15-1-1927 - 4-2-1927 — Page 74

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business with British firms and shipping companies. The

Commission Hongs Guild is still giving trouble. (These are the brokers who sell cargo for importers, and they have refused, under outside pressure, to sell cargo that comes by

British ships). The police, however, have shown some activity

and have torn down the Guilds poster propaganda.

Very little cargo is moving out of Hong Kong for North China, principally owing to the trouble on the Yangtsze and the approach of China New Year, both of which factors induce

merchants to restrict their commitments to immediate needs.

Shipments of rice and sugar are far below normal.

HONG KONG, 31st December, 1926.

sd. M.F. Key.

Secretary.