closure No. 7 AL

Cycloure 4p. 8

a military dictatorship was set up. General Ngai

Bong-ping, perhaps the most able of the Cantonese

leaders who are opposed to the Reds, managed to escape to Hongkong, and I enclose an account of

a conversation with him. I attach also a report of

a statement made by Mr. Foo Ping-sheung, Secretary

for Foreign Affairs in the Canton Government.

At the present moment Canton is controlled

by a number of Russians, who appear to be men

of considerable ability, and by a well-equipped and well-trained body of Chinese troops brought in

from distant provinces under the leadership of

General Cheung Kai-shek, reputed to be a first

class soldier, who is also not a Cantonese, being

a native of Chekiang. I may mention for what it is

worth, a report which is being spread in the

Colony to the effect that General Cheung Kai-shek

is acting under the orders of Peking and that it is

his intention, having got from the Russians such

arms and money as he requires, to turn the

Russians out and to declare the allegiance of

Canton to Peking, so that China may be in a position to present a united front at the coming Customs

and other negotiations. It is interesting to note

in this connection that the Russians have recently

sent away from Canton a number of their women-folk, and they have concentrated in one group instead of living in scattered houses as heretofore.

I have the honour to be,

Sir,

Your most obedient humble servant,

B.E. Stubbs

Governor,&c.

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