Enclosure 2

3. C.

20053

RECO RECo 7 AUG 00

तु

COPY.

C

Confidential.

01

Government House.

The following is H. E. Li Hung Chang's scheme of

defence:

A strong Army Corps, consisting if possible of

Chinese & foreigners (i.e. to prevent Army from

joining the rebels in case the labter get too

strong.)

(2) The troops to be stationed at different

centers or district cities to maintain peace.

(3) A strong police force also consisting of

Chinese & foreigners.

Military power is a vital necessity to his

maintaining peace & to treat with foreign Powers

in future. He thought that by appointing

Europeans to the Army greater confidence would

be felt in Southern China. As far as he knows he

has foreign sympathy on his side at present. He

thinks so because all the Ministers of Foreign

Powers have wired to him that the friendship

between foreign Bowers & China is not broken,

& that the Powers only regard the move as a

local uprising: "But of course" he said, "that

was some time ago before this murder of the

German Minister had occurred. He anticipates

that Germany will be the most difficult Power

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