CONFIDENTIAL.(2)

Sir,

51869

326

GOVERNMENT HOUSE.

HONGKONG. 16th October, 1925.

Gov. 49489

112 Cave

With reference to my confidential

despatch of the 2nd October, I have the honour to report the further course of events in connection

with the local situation.

2.

There have been one or two minor

incidents on the frontier during the past fortnight, but nothing of any importance has occurred. The boycott continues in full force, and trade with Canton remains at a standstill. The Canton Authorities show no desire to negotiate for a settlement, and it seems most unlikely that anything can be done along these lines pending the military operations which are about to commence.

3.

General Chan Kwing-ming appears to be gathering adherents, and the anti-Red forces are undoubtedly growing in strength, though man for man they are no match for the Russian-trained Red troops

It is useless who are much superior in armament.

to attempt to predict the outcome of Chinese warfare, but there is at least some prospect that is being aroused on all the strong feeling which sides against the Russians may in the end bring

the

about their downfall. It may be noted here that THE RIGHT HONOURABLE

LIEUTENANT COLONEL L.C.M.S. AMERY, M.P.,

&c.

&c.,

&c.

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