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lately dispatched on a confidential mission to the Tuchun

of Cheki ang

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to investigate matters. A defalcation of

$2,350,000 was then discovered, which it was explained

represented an advance of two million dollars to Sun Yat Sen

for financing the northern expedition. Reticence was observed

as to the balance, but there is reason to surmise that it was

When Ma an appropriation in aid of the late seamen's strike.

returns, the General would like to get rid of the above-

mentioned trio, but cannot well do so until Liu Huan's advance

of £2,500,000 is repaid. Should he find himself unable to

repay, things will go on as before, and, as Mr. Ku urgea, a

most serious situation will be created for British intereste

in South China, inasmuch as the Kuo Min Tang, with ample funde

in hand, will then be in a position to prosecute with renewed

vigour their anti-British activities. In support thereof he

cites a leading article, which appeared in to-day's issue of

the Ta T'ung Pao an organ of the Kuo Min Tang, published by the Commercial Press, with the second largest circulation (4/5000 copies) of any newspaper in Kwangtung and an unlimited circulation amongst the over-seas Chinese written by the principal wire-puller of the Society, one Chang P'u-ch'uan, alias Chang Chi (the editor's name is Jao Fu-shang). Ch'ung-k'al, as stated, is Sun's Vice-Minister of Finance, Liu Huan has just been made Chairman of the Association of the United Chambers of Commerce of Kuangtung, an organisation

recently started by Sun for the purpose of gaining a hold on the trading classes, as he has already gained a hold on the labouring classes. According to Mr. Ku, Sun has no immediate desire to oust General Ch'en whom he finds useful in many respects, but he wishes to keep him in proper subjection by entirely/

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