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giving the composition of these forces, the supplying and paying of which must become increasingly difficult unless a settlement is soon reached.

Almost the only hopeful feature of the situation is that many of the responsible men and the bulk of the population of China desire nothing but peso8. An illustration of this is contained in the enclosed despatch from His Majesty's Consul at Kanking describing the attitude of General Feng Kuo-chang. There can be no doubt that the solution indicated in the concluding paragraph of that despatch is the one which would beat serve our interests at present, but whether Yuan Shih-k'ai will be able to maintain his position, even with the diminished powers allowed him by his opponents, seems far from certain at the moment of writing.

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