COPY.

(F 1431/18/10.)

No. 205 (1852/23).

Copies to Tokyo, India, Hongbong, đ.0 đ, dmiral, Canton, Hankow, Shanghai, Tientsin, Mukden, Yunnan, Kashgar,

My Lord,

223

British Legation,

Peking,

March 24th, 1923.

2.

I have the honour to submit the following report on

recent developments in the political situation in China since

the date of Mr. Olive's despatch No. 89 of the 3rd ultimo.

The Administration, the formation of which under

General. Chang Shou-tseng as Premier was reported in the

despatch above referred to, succeeded in surmounting the usual

financial orisis at the Chinese New Year by means of an

Opportune release of salt funds. Out of this money instalmerte

of back pay were given to the Peking Police and the staffs of

the various Ministries and administrative departments of the

metropolis, while the rest probably went to satisfy the

demands of Ta'ao Kun, Wu Pai-fu, and Feng Yu-halang.

There

was talk of yet another internal lɔan issue, but it soon

became apparent that in the absence of any definite foreign

controlled security it would be impossible to induce the

Chinese bankers to subscribe, and the project, after having

been adversely voted on by Parliament (one of the few useful

aots so far to the credit of that body) was dropped. These

recurrent financial crises on the Chinese settlement days and

the way they are surmounted show how the authority and (apart from the demanda of their military masters) the responsibili- ties of the so-called Central Government of China tend more and more to be limited to the administration of the city and

environs of Peking.

3./

The Marquese Carson of Kedleston, K.G., G.0.§.I., G.Ç.I.E..

eto..

etc.,

eto.. FOREIGN OFFICE.

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