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535

by my receiving Taui. Chang Teo-Lin has recently made advances and I have given him a reply in the same sense.

I am informing Foreign Office of this correspondence message ende.

I should like if I may to point out that Bolshevism and not national and anti-foreign feeling has produced present situation at Canton. I think it is undesirable that what Canton communists are out for is

undeniable

to destroy all ?capital both European and Chinese. The Hong Kong strike which is still extending is directed not only against Europeans but quite as much against Chinese whose labourers and servants have been called out. The possibility of moderate party in Canton gaining control is apparently becoming more and more remate, and if they fail we shall have to face the fact that Kwantung will pass completely to Bolshevist control which will spell ruin to trade and seriously endanger not only British

but all civilised interests in the Far East. Only alternative would be intervention by force of arms which would be welcomed by the Commercial Community Chinese and foreign both at Hong Kong and at Canton,

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