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Decode.
Sir B. Alston. (Peking),
August 5th 1921.
D.
2.25.p.m.
August 5th 1921.
R.
9.30. a.m.
August 8th 1921.
No.305.
(R).
223
Intelligence Report.
Fighting between Kwang-Tung and Kwang-Si having resulted in defeat of the latter has now been re-
sumed on Yangtze, and Hunan and Kueichow troops are attacking Hupi with avowed object of ousting Military Governor whom Premier refuses to remove.
Northward, reinforcements are being sent to Hang-Kow but much depends on attitude of their
Antu forces Commander Wu-Pei-Fu to whom defeat of
last year was principally due and who is believed to be himself in favour of provincial autonomy.
Military Governor Feng-Tien is negotiating arrangement with representative of the Far East Republic (whose troops occupied Urga on (? July 4th)) which may result in the Chinese expedition to Mongolia being dropped and leave him free to face menace from
Hu-Pei.
Efforts are being made to float further internal loan but if hostilities develop it is difficult to see how the present Government can survive either financially or politically.