CO129-500-3 Canton situation- governor's despatches 29-7-1927 - 1-9-1927 — Page 46

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FOR

USE

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NAL OFFICE

R

30013?

38.

46

SECRET

Copies to:

Canton No. 251.

Peking No.

{

Hmg Kong

D

28.

RECEIVED

1-9 AUG 1927

ICOL. OFFICEHONGKONG.

Sir,

GOVERNMENT HOUSE,

7th July, 1927.

I am informed that the picketing of the

British river steamers at Canton, mentioned in

paragraph 3 of my secret despatch of the 30th June,

has been terminated by the abject surrender of the Company (Hong Kong, Canton & Macao Steamboat Com- pany, Limited) to the demands of the Canton Seamen's Union. The position is typical of the recent actions of this Company. Without consulting either myself

or any officer of my Government, and I believe without consulting its own Directorate as a whole, the Managing Director decided at a most inopportune

moment and in a most unfortunate way to challenge

the Union's power. The moment was inopportune on account of its proximity to the anniversary of the Shakee incident of 1925. As I pointed out in paragraph 2 of the despatch referred to above, the expurgated Kuomintang regime in Canton was ex- periencing the greatest difficulty in avoiding the charge of being counter-revolutionary and pro- imperialist, and its Communist enemies were making the fullest use of the approach of the 23rd June

to rouse

THE RIGHT HONOURABLE

LIEUTENANT COLONEL L.C.M.S. AMERY, M.P.,

&C.,

* No. 3000!

&c.,

28.

&C.