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13 LET ALL TREMBLE AND OBEY! T the disorder created by the incident on board the Fatshan, Lugard believed, was now over. His impression was that Swire's had at last settled on compensation for the family of the dead man 'with the concurrence and cooperation of the Consul, and that the Boycott, whether of Messrs Butterfield and Swire or of Japan was rapidly being forgotten, and trade assuming its normal course.' Even Law believed his troubles had subsided. Both had written of their relief to Scott in April. 'I truly think we have left the dark ages behind us', Law wrote. The large sum of the Swire donations was 'a signal proof of England's friendly intentions', and the Viceroy must certainly regard it as such. 'I shall make it my business to rub it in with the Viceroy and Cantonese and others that the Firm they wished to Boycott (over the Fatshan affair) is capable of this magnificent generosity to China, in support of a scheme for China's benefit. Bread cast upon the waters .. .' To Lugard's concern, however, a passing remark made by Fox when he called at Government House on Wednesday 9 June showed that the cauldron had far from gone off the boil. Fox was in Hong Kong for a few days and, on the 5th, had discussed the situation with Law. Swire's shipping activities were now being interrupted in Manila and the treaty ports along the Chinese coast, and a deadlock had developed, of which Lugard had been unnecessarily kept in ignorance. 'We are still having trouble over the Fatshan incident of last November', Law wrote to Scott, 'and the natives here are actively assisting the Self~Government Society of Canton who are the instigators of the trouble. For the last two Manila sailings we have had no Chinese cargo . . . it is nothing but blackmail.' Law's view of his trading troubles was that 'a weaker-kneed policy than that adopted by the Government here ... could not be imagined.' The situation was serious. Along the coast north from Hong Kong to Shanghai were some sixteen treaty ports engaged in foreign trade, much of it British. The boycott having ended in the territory under his jurisdiction, the Viceroy declined to help further. It was he who had refused to accept the settlement offered to the family, Law reported, 'as the relations were not in necessitous circumstances.' The firm had wasted over half a year in futile attempts, largely through Fox personally, to negotiate a conclusion to the dispute, but Lugard thought it still not impossible to persuade the Viceroy to intervene once again and suggested to Fox that he be reminded 'of the signal generosity of Messrs Butterfield and Swire who have promised a sum of £40,000 to the University, a project which the Viceroy has very greatly at heart'. He was able to ask more questions the next night when Law chanced to be dining with him; what he was then told revealed so alarming an impasse, over so wide an international area - the Society was issuing circulars as far away as Australia and the 124 40. Taipan O.R. Law 0/ Swire's Lugard in Hong Kcmg other parts of the Pacific - that he doubted if he himself could now properly intervene, and he called a meeting with Law and May on the morning of Saturday 12 June. 1 Fox arrived back at Canton to fi nd a note from Law awaiting him: the Hong Kong boycott was breaking out again. On the lOth, he started to take action, addressing strong representations both to the Viceroy and, by telegram, to Jordan in Peking, and followed these up on Monday the 14th when, in an emergency audience, he begged the Viceroy to issue a Proclamation condemning the boycott. By intimidating the Chinese merchants who normally moved their goods in Swire's ships, the Society had utterly destroyed the trade in Manila, and the reaction was spreading 'across the Pacific and to all Chinese Pons.' The terms of a settlement had been passed on through an Amoy merchant, Woo Tang-sam, who was acting as an interested intermediary between the firm and the Society. Swire's shipping business was facing ruin, at least temporarily, and Law was soon ready 'to come to terms at any price.' The terms to which Law had agreed, and which Lugard found 'humiliating', were four in number. Compensation of $3,200 was to be paid to the...

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