CONFIDENTIAL.

Hongkong.

My Lord,

26538 Cote C.O. 30548 Rece PEG 26 AUG 07

Government House, Hongkong, 25th July, 1907.

With reference to my Confidential Despatch of the 31st of May last, I have the honour to inform Your Lordship that although I have no official information on the subject, I believe it is the fact that Viceroy Shum has obtained permission to resign the appointment of Viceroy of the Two Kwang and that he will therefore not come to Canton.

2. It was known that Shum was very unwilling to take up the post, and I am informed on authority that I regard as trustworthy that the principal reason of his unwillingness is that whereas during his last term of office in Canton he was allowed to put in circulation an issue of notes to the face value of One Million Dollars on the understanding that he placed in reserve a sufficient number of dollars against the issue, he in fact issued notes to the face value of three millions of Dollars with...

RIGHT HONOURABLE

THE EARL OF ELGIN, K.G.,

&C...

&C...

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... (the last line is not clear due to OCR damage, but it seems to be some non-English text, possibly Tibetan script: པ ཨུཛི ཝཾ ཝིཏྟཾ) is not relevant to the main content and is ignored.

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