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Paraphrase telegram from the Governor of Hong Kong
to the Secretary of State for the Colonies. (Received Colonial Office 8.30 p.m.6th January 1923)
dahin 7th Januar
Clear the Line.
Your telegram 27th April last paragraph. Following is most urgent.
There is grave danger Chan's forces will be defeated by Sun's in the course of next few days and the former is very hard pressed for money to maintain himself. Consequences to British trade from the reestablishment of Sun in South China are likely to prove disastrous as revival of labour troubles is certain. Chan must have money in order to hold his own and have it immediately. I submit it would be well worth while of this Government to advance up to two million dollars to him; in the alternative a loan could almost certainlybe arranged from private sources at lender's risk if His Majesty's Government do not object. Consul-General Canton has been consulted and agrees that Sun's return would be disastrous; he points out danger of thus further antagonising him should be prove successful and that in any case taking sides in China's internal disputes would be departure from neutral attitude hitherto observed.
Situation is in my opinion too serious to allow academic objections to prevail. Sun is already so bitterly hostile to Great Britain that nothing can further antagonise him.
The utmost endeavours should be made to destroy finally his influence as he is a danger to divilisation. If any action is to be effective an immediate reply is necessary.
Repeated to Peking end Canton.
STUPRS.