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Your Excellency,
Mr. Liang Shih-yi and Mr. Yeh Kung-cho, ex-Minister of Communications, came to tea at my house yesterday, accom- panied by Sir R. Ho Tung who interpreted. They discussed politics for over two houre.
2.
With regard to the present Canton situation, they think that Tu Pei-fu has missed thechance which was offered to him.
He is no administrator and is no judge of the qualities which go to make up an administrator. Hence the failure, one after another, of the puppets whom he has put up in Peking. His inability to introduce any stability into the Government is making him increasingly unpopular.
Chang Tso-lin on the other hand is a good administra- tor and, particularly, a good financier. He went to Manchuria to find a debt of $18,000,000 which he has now converted into a surplus of $30,000,000. There is no Japanese money in this. A large part of it is revenue properly belonging to the Central Government, but Chang holds it in trust for the nation,
4. The salvation of the country lies in the pacification of each province separately under its separate head, who must be a native of his province. in excellent example has been set in Shensi, which has been well administered during the past ten years, and Chang Tso-lin has been most successful in Manchuria, where the popular support accorded him is largely due to the fact that he is in his own country. Chang Tso-lin and Dr. Sum are proceeding along the right lines of pacifica- tion and consolidation, there being no possible chance that the problem will be solved by militarim. It is noteworthy that Dr. Sun has abandoned his extremist policy with its entire dependence upon the Kwok Man Tong and is nominating picked men to official posts irrespective of their particular party: whereby he has gained considerably in popularity among the merchant class. Dr. Sun will very possibly succeed in fimly