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REGE 18 MEL 18.

Paraphrase of a telegram from Sir J. Jordon (Peking) March 17th

1916 in cipher.

D. 2.10 p.m.

March 17th, 1916.

R. 1.30 p.m.

No. 96

With reference to my telegram No. 83, it is stated that the Government troops have recovered possession of the Upper Yangste and that the rebels are withdrawing into Yunnan from Southern Izechuen.

The grave and unexpected development in the Bituation which occurred yesterday, when Kuangei declared its independence, has however balanced this success. The chief danger to the rebel Government was from an attack by the army commanded by the brother of the Governor of Canton, which had penetrated into Southern Yunan by the West River route, and which was being joined in the neighbourhood of Vengtou by adherents of the Governor's family. This force is now isolated and is in a most precarious position.

His Majesty's Consul General has been informed by the Governor at Canton who is greatly perturbed by events that his policy will be to resist aggression from Kuangsi.

This has been sent to India and repeated to Tokio.

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