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(Ntablishing himself at Canton, and that the Corpora-

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ion is prepared to furnish the g 2,000,000 required.

r. Liang ib-yi was also in favour of the under-

aking, but added that nothing could be effect ed

*without allowing a marcin of free money for the Sant on

overnment of the moment ". This last remark ranre-

rents, I think, the cra of the situation. Sun Yat-sen

of course, in desperate need of funds, and can

obably be induced to do almost anything in return

(or en immediate cakḥ advance. The matter appears

erefore to depend on whether we are or are not

prepared in the present case to denart from our policy

f abstaining from giving financial assistance to any

o the contending factions in China.

On the 23rd vltimo I received a telegrAT

"om the Governor of Mangkong informing me that is

Excellency was practically certain that he could

Induce Dr. Sun to consent tothe immediate construc-

ion of the Junction line by means of a loan from the

Pitish and Chinese Corporation on terma similar to

oee under which the Chinese section of the railway

jad been constructed, the money for the purchase of the

/necessary

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