CO129-500-1 Canton situation- governor's despatches 18-5-1927 - 9-6-1927 — Page 21

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for Foreign Affairs at Canton has notified His

Majesty's Consul General that the area where

H.M.S. "Dauntless" anchored is mined and must be

avoided by shipping. The statement is probably

untrue and may have been issued merely with a

vague idea of "saving face".

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6. I am glad to be able to report that the through express traffic was resumed over the Kowloon-Canton Railway on the 1st June, our section

supplying the locomotives as proposed in paragraph 4 of my secret despatch of the 19th May. The experiment was most successful.

7. Chinese money is now very cheap in the

Colony, the rate being eight cents daily for every

$1,000, i.e., 2.88% per annum. This is said to be a record. But there is no use for money, even at this cheap rate, because of the chaotic and anarchic conditions prevailing in China and the consequent

bad state of trade with the interior..

8.

Figures have now been compiled showing

the effect of the disturbances in China on the

population of the Colony from the middle of

February to the end of May. The excess of arrivals

over departures by all routes for that period is

calculated to be 50,401 persons.

g

The following documents are also enclosed- for your information:-

(a) An extract from the Kwok Man San Man,

Canton, of the 11th May, containing a manifesto by Marshal Tseung Kai-shek to the Nationalist

armies on the sins of communism.

(b)

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