7. It is apparently impossible to give the exact number of children employed according to their ages, because there is no means by which the foreign factory manager can determine the age of a Chinese child. Birth certificates are unknown, and the statements of the parents, when available, cannot be relied on, as it is the parents' endeavour to get their children to work as early as possible. The mill managements are, in consequence, obliged to resort to a standard of height.

8. It is claimed, however, by nearly all the British establishments that every endeavour is made to keep children of tender age off the premises. The Oriental Cotton Spinning and Weaving Company (Limited) state that about 100 children under the age of 12 are admitted to their mill, but that many of these are infants and babies in arms, who come in with their mothers for protection and comfort and are not wage earners, whilst others are children helping their mothers with the work, who may or may not be under the age limit. Child workers between the ages of 12 and 16 probably number a few thousand, the figure given by Jardine, Matheson and Co. (Limited) for the three mills under their management being 3,360.

9. The work is done in night and day shifts, which vary in length from eleven and three-quarter to thirteen and three-quarter hours. The workers make their own arrangements for food and take their meals when they feel inclined. Wages are sometimes paid direct and sometimes through a labour contractor, and in the cotton mills are always at piece rates. An average would work out at between 22 cents and 40 cents a day (say 6d. and 11d. respectively).

10. It is, I think, generally admitted that conditions in the mills and factories under British control are far superior to those prevailing in Chinese establishments, and the wages paid are higher. On the other hand, the efficiency of Chinese labour is not to be compared with that employed in England. It is stated, in fact, that the average worker in the spinning department of a mill in China working for eleven and three-quarter hours cannot produce more than 25 per cent. of the work turned out by an ordinary Lancashire operative working eight hours, and the quality of the work is far inferior.

11. As regards the statements which have been made that conditions in British factories in China are deplorable, the general manager of Jardine, Matheson and Co. (Limited) has pointed out to me that although industrial unrest in China has been increasing in recent years, and economic strikes have been of frequent occurrence in most forms of industry, the three cotton mills which have been managed by his firm for the past twenty-eight years have never had a strike until the beginning of last June, and then only because the workpeople were intimidated by the political agitators who were responsible for the anti-foreign disturbances. The same point is made in the following extract from a letter by the managing director of Arnhold and Co. (Limited), the firm which manages the only other British cotton mill in Shanghai. "If the workpeople in the British-controlled mills had been dissatisfied, they would no doubt

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have demanded better conditions and threatened to strike, but the contrary has happened. After the strike was first called, the workers in the British mills continued working for several days. They were then compelled by intimidation to go out on strike; they did so, very reluctantly, and even to-day, after seven weeks, have not made any demands whatsoever, and are prepared to go back to work as soon as the intimidators will allow them to do so.

12. Finally, in refutation of the charges which have been made that the present unrest in this country is due to the industrial exploitation of the people by British capitalists, it is of interest to give such figures as are available regarding the share taken by British industrial enterprise in the whole industrial development of modern China.

13. In a formal statement on the subject of tariff autonomy made at the Washington Conference, Dr. Wellington Koo, one of the Chinese delegates, informed the assembly that there were, in China, more than 1,000 Chinese factories employing foreign machinery and methods and engaged in over thirty different kinds of important industries." On the other hand, British factories in China consist of the establishments enumerated at the beginning of this despatch, together with a few engineering works, three or four egg and cold storage plants and a few furniture factories.

14. As regards cotton mills, there are at present 128 in China, with a total spindleage of about 3,537,400, and 19,900 looms. Of these, only four are under British control, with a spindleage of 217,282, and 2,612 looms. It is clear, therefore, that the policy of British-controlled factories can have but little effect on the general labour movement in China, and can still less be held to blame for the present anti-foreign outbreak, which, so far as the British are concerned, is entirely political.

15. It is also to be noted that although the plight of the working children of Shanghai has justly excited the pity of foreign sympathisers, and the movement for the amelioration of their lot has been set on foot by British and American philanthropists, no mention of child labour has yet been made in any of the numerous demands put forward for the settlement of the strike by the labour unions and student organisations, nor has it ever been referred to by any Chinese party as an evil which China has suffered at the hands of foreigners. It is not at all certain, in fact, that the introduction of municipal legislation restricting the employment of child workers would not be regarded by the agitators as a further instance of foreign interference with Chinese rights.

I have, &c.

S. BARTON.

Enclosure 1 in Annex.

Report from Ewo Cotton Mills (Limited), Proprietors of Ewo, Yangtzepoo and Kung Yik Mills, comprising 166,282 Spindles and 2,162 Looms, together with Dyeing and Bleaching Plants.

1. APPROXIMATELY 2,000 children between the ages of 13 and 16 years employed in spinning departments, and 1,100 in weaving departments. On the 1st September, 1923, notices posted that no boys under 10 years and girls under 12 years of age admitted inside the mills.

No recruiting-free labour-workers apply to the mills.

3. Two shifts of eleven and three-quarter hours in spinning departments and one shift of thirteen and three-quarter hours in weaving departments. Children are only employed on light work, i.e., doffing, winding, drawing-in, sweeping, &c. In winding and drawing-in departments, eleven and three-quarter hour shifts only. Drawing-in department-day work only at all mills. Winding department, Ewo Mills-day and night work; Yangtzepoo and Kung Yik Mills-day work only.

Rest. No rigid discipline enforced-children generally rest whenever they are inclined.

Feeding.-Workers make their own arrangements for food. The mills supply constant unlimited pure boiling water free of charge. 4. Wages.-Piece work in various departments-lowest average wage, 22 cents per day; highest average wage, 40 cents per day. 5.-(a.) All British machinery, with usual safeguards.

(b.) Sprinklers, hydrants, fire-buckets, chemical extinguishers, &c., to meet with the requirements of the Shanghai Fire Brigade and Fire Insurance Association.

(c.) Ventilation.-Fans, humidifiers and air-washers throughout our premises.

(d.) Sanitation.-Usual.

6.

Superannuation fund since 1919 for Chinese workers, No. 1 and No. 2, men and women.

In China the workers stay away whenever they are inclined. Average worker in the mills in China in the spinning department, although working for eleven and three-quarter hours, cannot produce more than 25 per cent. of the work turned out by an average Lancashire operative working eight hours. Quality of work far inferior.

Shanghai, August 5, 1925.

Enclosure 2 in Annex.

Report from Manager, Ewo Silk Filature.

1. Two hundred and sixty children are employed in the Ewo filature as batteuses. No child is accepted under 13 years of age. 2. Free Labour.-Workers apply to the filature.

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3. Working Hours.-Ten and three-quarter hours per day-no work on Sundays. During very hot weather the filature is closed at mid-day.

N.B.-Chinese filatures usually work on Sundays.

Rest.-Quarter of an hour in the morning and one hour at mid-day. Each child is provided with a stool and can work sitting down.

Feeding.-Workers make their own arrangements. The filature provides unlimited supplies of hot tea free of charge, as well as hot and cold water. Cents per day.

4.

Wages

Fileuses
Batteuses
Sorting, &c.

Our wages are always 2 cents per day higher than any Chineseowned filature.

5. Safeguards.-There is no machinery which is dangerous. Fire Protection.-Sprinklers, hydrants, hose, fire buckets, chemical extinguishers and two concrete fire escapes (in the only two-storeyed filature) to meet the requirements of the fire brigade and the Insurance Association.

Sanitation and Ventilation, &c.-The filature, which is built on modern lines, is lofty and spacious, with ample light and air (there is no overcrowding as in some Chinese-owned filatures). buildings are whitewashed throughout annually.

6. Medicines are provided free of charge on request.

Shanghai, August 5, 1925.

The

Enclosure 3 in Annex.

Dear Sir,

Arnhold and Co. (Limited) to Consul Brenan.

Shanghai, August 4, 1925. ORIENTAL Cotton Spinning and Weaving Company (Limited) (51,000 spindles and 450 looms).

In accordance with your request of the 29th ultimo, we have pleasure in handing you herewith a full report of labour conditions at the above mill, which is controlled by us.

Employment of Children.—In the last report of the Child Labour Commission, the number of children below the age of 12 in all departments was put down at 112. Many of these were infants and babies in arms, who came with their mothers for protection and comfort, and not wage earners, and the others were children helping their mothers with the reeling or bobbin boys, who may or may not be 12 years or under as it is so difficult for a foreigner to judge the age of a Chinese child, and there is no method of finding out same accurately. Prior to the Chinese Labour Commission sitting, we had tried many methods of dealing with the care of the very small children, including the establishment of a nursery, but the parents. would have nothing to do with this, preferring to let the children

play round or lie in a basket.

Since the sitting of the Chinese Labour Commission, which we have agreed to help as much as possible, we have instructed our watchmen not to allow any small children into the mill, but on the rush that always takes place on a change of shift some are always smuggled through that are, in our opinion, under age.

As regards passing a child, the only guide we have is by height, as no certificates are obtainable. When we first stopped children from coming into the mill, the parents showed great resentment, as they were afraid of them getting injured or kidnapped, and we were for a long while short of the reelers, who were most persistent in bringing in their children; but we insisted on keeping them out and now we have filled up all vacancies, although we have lost. many good workpeople, who have gone to mills where the restriction is not enforced. Particularly during the cold weather, it was very difficult for us to keep the small children out of the mill as their mothers would insist on bringing them, as the mill was so much warmer and more comfortable than their own homes. However,

we are working, and consider we have made very substantial progress towards eradicating this form of labour.

Method of Recruitment.-In the Oriental Cotton Mill we use a labour contractor, who supplies all the labour for making a bale of yarn at a price per finished bale delivered to our godown. This contractor employs a number of No. 1 women, who have charge of a number of frames and who engage the necessary labour. These workers are generally from the same village or district, and possible relations.

Hours of Work, &c.-The mili works nominally twenty-four hours per day and is divided into two shifts of twelve hours each, and the workpeople take their meals at all hours. This we have tried to stop, but the Chinese workers prefer to take their meals when they feel hungry, and not at a stated time; the result being that rice is being boiled from 7 A.M. until 3 or 4 P.M., and workers use for this and similar services their children, which are classed as child workers.

No

Our mill manager would much prefer to have a stated time for meals, and we are trying to adopt 11:30 to 12:30, by only allowing food to come to the mill from outside during these hours. definite arrangements are made for feeding similar to those at some mills, but every worker is provided with a stool to rest and have their meals on.

Wages. This is entirely in the hands of our labour contractor or compradore as far as the spinning mill is concerned, but for the weaving we pay direct to the workers better wages than many Chinese mills, and for some classes of work far higher wages than Japanese mills on similar work. In the weaving, we have never received any complaints or requests for more wages, though we have been asked to run the motors longer hours, which we have not agreed to.

Safeguards against Injury.-These are similar to those employed in England, all our machines are British made and supplied with