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7. There is no intention to bombard the city. To land cargo in Hongkong, although not technically a blockade, amounts to the same thing, inasmuch as there will be no goods on which

to levy duty.

8. His threat of reprisals is an empty one. By his exactione he has greatly alienated public feeling and I doubt if he would receive popular support here or even amongst the overseas Chinese, whose property in Kuangtung has been confis. cated or threatened with confiscation.

| -

As to your telegram to the Minister, I am completely at a loss to understand what is meant by the words "the enormous reduction involved in the modification of his claim". Sun's claims remain unaltered and even the deposit of revenues in banks would not deter him from levying any additional non-Treaty imposts he chose to inflict on foreign goods, in order to get ready cash.

To whom are to be paid the arrears for the period when Sun was last away from the province Logically they belong to Ch'en Chiung Ming.

4

Great Britain is not taking the lead in this matter. It is a question of vital importance to all the Powers aa

unanimity of action. witness that unusual spectacle these days The Inspector-General is a British subject, I happen to be Senior Consul and British holdings of Customs' bonds happen to be greater than those held by foreigners. It is only to that ertent that we can be dubbed leaders.

Eugene Ch'en posing as the mouthpiece of Sun would appear to have been, as usual, "talking through his hat* and employing his wonted form of "Schrecklichkeit". He is not the Foreign Secretary of this Government and is cordially

He is not in a position, detested by the holder of that post. as you will have seen from my despatch of yesterday, to promise cooperation in attacking pirates and his threat to start a boycott of Hongkong can be treated with comparative equanimity.

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