CO129-500-2 Canton situation- governor's despatches 30-6-1927 - 8-11-1927 — Page 15

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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process of disintegration, and feels itself weaker than the

Hankow Party. Ho Ying-chien, Pei Shung-hsi, Li Chung-jen,

Chu Pei-teh, Chang Fat-kuei and Tan Yen-kai are at heart more friendly towards Hu Han-nin than towards Wong Ching-wei whom

they regard as an out-and-out 'Red'. But Hu Han-min has lost prestige during the last two years, and is now not/very powerful factor in the Party.

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Mr. Lun is of the opinion that the new taxes may not come into effect on the 1st September. He gave reasons dissimilar to those given by Ir. Liang Shih-yi. He said that when the

order concerning these taxes were issued, the merchants banded

themselves into a large body and went to Koo Ying-fan to lodge their protest. The delegation was headed by Chau Tin-pong, the

Chairman of the Canton Chamber of Commerce, who is a time-

server, and has always an eye on Government monopolies. Then the deputation reached the Finance Ministry, Chau Tin-pong asked his friends to wait outside, as he wanted to see Koo first When he was with Koo, he said that his position in the Chamber compelled him to head the deputation, though he personally had no objection to the new taxes! He asked Koo, as a 'make-

believe', to rebuke him and bang the table when the others came in! The farce was played beautifully. But unfortunately the trick got known somehow, and the merchants were very angry with Chau. They at once formed themselves into a new association called "The Merchants Self-Protection Association" for the pur- pose of resisting the new taxes, and of 'downing' Chau Tin-pong particularly. Kr. Lun believes that because of the force of this

resistance, the tax may not come into effect on the declared date

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