}

ONFIDENTIAL.

Hongkong.

My Lord,

23338

TREES Governhept House 07

513

Hongkong, 31st. May, 1907.

I received authoritative informa-

-tion this morning of the re-appointment of the notorious

Shan Chun to be Viceroy of the Two Kwang in the room of

Chou Fu who is apparently to be placed on the retired list.

2.

During his former tenure of the

Viceroyalty at Canton Sham Chun proved so antagonistic to

England that His Majesty's Consul-General found it almost

impossible to settle any business with him.

Many important matters are pending

at canton affecting British Trade and not a few questions

touching the interests of this Colony; and other questions

almost daily arise, so close is the Commercial connection

of this Colony with the neighbouring Provinces.

3.

It will be disastrous to British

interests in South China and to those of this Colony if

Sham Chin who, protégé of the Empress Dowager and a re-

-actionary

RIGHT HONOURABLE

THE EARL OF ELGIN, K.G.,

800 . . .

&c

&C. *

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