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preliminary meeting had apparently been arranged at Dutch Folly between a representative of Luk Wing Ting and some adherents of the party who desire the removal of Lung Chi Kwong from the province, the heads of the land and water police of Canton, and various Military and Naval Officers. Discussion ended in a quarrel in which firearms were freely used with the result that several persons wera killed including Luk's representative. This unfortunate occurrence led to a suspension of all negotiations between Luk and Lung and the entire interruption of trade between Hongkong and the province. One of fact of this interruption is that vast cargoes of rice worth not less than $6,000,000 are hung up here while the inhabitants in the silk districts and elsewhere in Kwangtung dependent on imported
rice are in danger of starvation.
6.
Luk has now been joined at Shiuhing by Shum Tsen Huen formerly Viceroy of the Two Kwangs under the Manchu regime, a protege of the Japanese and an aspirant to the Presidency of the South China Republic. His party is determined to drive Lung out of the Province and Lung on his part is for the present dispos- -ed to maintain himself at Canton and at a few principal centres in the province. The result is that he has withdrawn his troops to these centres and thus in the remainder of the Province there exists no government and no authority for the maintenance of law
and order.
7.
Thus for some days past gangs of robbers have been daily collecting the takings at stations on the Chinese Section of the Kowloon-Cmton Railway and the communication with Canton by railway has been maintained with difficulty. Yesterday it was entirely suspended owing to fighting between Sheklung and Canton between troops of Lung and robbers from the East River acting probably under instructions from Chan Kwing Ming at Vaichow consequently I sent you a telegram of which I enclose a paraphrase. This morning I am glad to say I learn that the line is clear and I assume that General Lung's troops have driven off the marauders.
On the 23rd. instant H. B. M. Consul-General
8.
at