:
+
G*.
146
«
3.
A discussion which I had with Sir Richard Dane,
who visited me en route to Canton on business connected with the Salt Gabelle and who informed me that the revenue from that source is diminished by no less than $450,000 a month owing to the heavy discount on the lotes in which it is paid, and with the Manager of the Hongkong and Shanghai Bank, as to what steps could be suggested for redeeming at any rate some portion of the Note Issue and thus restoring confidence in it, resulted in the suggestion by Mr. N. J. Stabb, the Manager of the Bank, that part of the loan held in Europe for the re-organization of the Salt Gabelle should be advanced for redemption of the Canton Note Issue. Before I sent my telegram of the 14th. of March on the
boy/Subject of this proposal I ascertained from His Majesty's Consul-
En 2603/5
-General at Canton that he concurred in it.
A.
I would point out with regard to Sir John
Jordan's objection, mentioned in my telegram of the 21st. of January, to the intrusion of the quintuple Group in Kwangtung,
that in the proposal now under discussion the Salt Revenue which is already under joint control of the Group is principally concern- -ed, and that no additional control is suggested beyond what is provided for under the terms of the Re-organization Loan. I learn- -ed on the night of the 23rd. instant by telegraph from Sir John Jordan that he himself is in favour of the new proposal.
5.
I trust that the suggestion made by Mr. Stabb may result in early relief of the finances of Kwangtung. The condition in the Province assumes a gravetaspect every day and a
mutiny on the part of the troops in and around Canton, who must
be paid in depreciated notes since there are no other funds
to pay them with, is a contingency which may happen at any
moment.
6.
There has recently been a mutiny near Swatow
particulars of which I have been unable to gather as all news
concerning