C

249 CONFIDENTIAL.

Sir,

REC

44232

REG 15 SEP 16

GOVERNMENT HOUSE,

HONGKONG. 11th. August, 1916.

488

1

In continuation of my Confidential Despatch of the 31st. July, I have the honour to inform you that although there has been continuous fighting at Canton during the past week the rebels do not seem to have made much progress towards their apparent aim of defeating General Lung's troops and capturing Canton on the contrary Mr. Jamieson informe me that General Lung is confident of being able to hold out for some time. For the present therefore no steps have been taken towards sending British troops to Canton.

2.

I transmit for your information a copy of a

telegram sent by Sham Sai-lam (Sham Tsen-huen) in reply to Mr. Jamieson's telegram copy of which was enclosed in my Despatch under reference. The situation is still very critical and I enclose paraphrase of a telegram which I associated myself with Mr. JamiesoD in sending to Sir John Jordan yesterday.

3.

With regard to the Railway, traffic has been re- established as far as Shek-lung but no through trains to Canton can yet run. The rolling stock of the British Section has not been damaged but I do not allow it to pass beyond the border of the British Territory. There are three coaches at the Canton end of the line which cannot at present be recovered. In this connection

I have been informed that the destruction of the line and telegraph communication was not carried out by robbers as at first thought

HE RIGHT HONOURABLE

ANDREW BONAR LAW, M.P..

&c..

&C..

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