429/81/10).

Paraphrase of telegram No. 57 from Sir

February 2nd.

na. 8043

RLC

Alston,

292

Intelligence Report.

Fan 19. B 21

Yunan and Canton are the only provinces which definitely

adhere to Confederation of the South at (?present) and there

is opposition to handing over to political extremists (? 'such

as' omitted) Sun Yat-sen of Canton provinces under Ch'en

Ch'iung-ming, so that Sun's scheme for proclaiming Southern

Federal Republic under Fresidency of himself cannot gain much

Renewed hostilities are threatened in Szechuan and

hive already broken out in Hunan through local rivalries; the

rest of the provinces South of the Yangtze are waiting to see

what course events take.

ground.

The situation in the North is dominated by rivelry

between Changtsolin et Mukden and other military leaders

among whose number is the Premier; and internal quarrels are

still carried or maintained in Kiangai, Kansu and Hapei.

The Central Government continue to endeavour to effect e

reunion, with new Farliament and cancellation of Sino-Japanese

Military pact for its basis, but as Central Government is

powerless and bankrupt progress of the scheme is well-nigh

hopeless.

Flease refer to my telegram 44.

Anxiety amounting almost to upheaval is prevalent among

all classes and rumours are again ourrent of a monarchical

restoration owing to the desperate situation.

Repeated to Tokio.

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