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CONFIDENTIA L.

C.O.

156

40478

IREC

161

IRFG 21 DEC 12

GOVERNMENT HOUSE,

HONGKONG.

9th. November, 1912.

Sir,

The 5 436 47

In continuation of my Confidential Despatch of the 4th. ultimo, I have the honour to transmit for your informa- -tion the enclosed copy of a Memorandum, addressed by His Majesty's Vice-Consul at Canton to His Majesty's Minister at Peking whither the Consul-General has gone on a short visit, on the subject of the financial difficulties of the Canton Government.

2.

The general condition of the City of Canton and of the Province is very unsatisfactory. It is true that con- -trary to expectation no attack has been made on the existing Government. Lack of a leader in whom the population have confidence and lack of funds to finance another revolution are probably the only reasons why an administration as inefficient as is the

established Government is tolerated. Martial Law still continues both in the City and in the Province. The City is kept quiet by the presence of an overwhelming Military force. But beyond its precincts the administration has little or no real authority. Law- -lessness is rampant in the Province because the Covernment can- -not spare troops from the City and its immediate vicinity to keep order.

3.

In its international relations the Canton Government, as far as this Colony is concerned, displays a singu- -lar want of consideration for established right or the elementary principles of official etiquette. Their treatment of the case of the Green Island Cement Company upon which I have addressed you in

RIGHT HONOURABLE

LEWIS HARCOURT, M.P.,

a.

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&LC..

&c

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