[This Document is the Property of His Britannic Majesty's Government.]

C

7053

AFFAIRS OF CHINA.

REC!

Rea? 8 FEB 18

CONFIDENTIAL,

[October 20.]

SECTION 2.

[201742]

No. 1.

Mr. Alston to Mr. Balfour.-(Received October 20.)

(No. 279.) Sir,

Peking, August 28, 1917. IN continuation of my despatch No. 254 of the 14th instant, I have the honour to report that all the Provinces of China have definitely accepted the state of war with the Central Powers, and that the regulations concerning the treatment of enemy subjects promulgated at Peking have been accepted by those provinces whose relations with the Central Government appear to be suspended.

The situation in the two Kuang provinces remains peculiar. The Inspector- General, Lu Yung T'ing, and the Military Governor of Canton, Ch'en Ping-k'un, still seem desirous of avoiding an open breach with Peking, but have adopted an attitude of local administrative independence. Thus China's declaration of war against Germany and Austria was not held to apply to Canton until the decision had been approved by the "Rump" Parliament of disaffected Radicals which is now holding session there. In the opinion of His Majesty's consul-general, Lu and his supporters will, if not interfered with by Peking, eventually give their support to the Central Government and eject Sun Yat-sen and his Radical followers.

There are various and conflicting reports as to what is happening in Szechuan, but from these, and from reports from His Majesty's consul at Chungking, it appears that Yüunanese confidence in their strength is steadily weakening. I learn that negotiations are taking place at that city between Chou Tao-kang, the Military Governor appointed by Peking, and the Yunanese, and it is even stated that they are willing to send to Peking the Yunnanese Governor evicted last spring, in obedience to the Presidential mandate then issued, but ever since ignored, and to evacuate Szechuan, leaving only one division which will be under the command of the non-Yünnanese Governor Chou.

Generally speaking the situation encourages one to hope that President Feng Kuo Chang, in alliance with his powerful Premier Tuan will slowly, by Chinese methods of compromise and by his control of military force and funds, extend his control over the whole country;

As regards affairs at Peking, the departure of ex-President Li this morning for Tien-tsin, in the British concession, at which port he proposes to reside, gives the quietus to rumours that Peking was afraid to let him go for fear that the Radicals would obtain control of him and use him for their ends.

In the P.S. to my despatch No. 245 of the 20th instant, I reported that His Majesty's example in telegraphing his good wishes to China on her entry into the war had been followed by the President of the French Republic. Since that date further belated telegrams in similar congratulatory terms have recently been addressed to President Feng by the Russian Government and the King of Italy,

(Copy to Tokyo and Hong Kong.)

[2737 - -2]

I have, &c.

B. ALSTON.

259

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