02:

Enclosure No 1

The CoRuce No.2.

52

enclose a cutting from the Canton Gazette of the 13th January, in high is reported a speech delivered by Mr. Sun Fo on the 6th January on board the S.S."President Grant", in which ship he travelled from Shanghai to Hongkong. In this speech he says:- "If the National Government were at Peking, China would have declared war against England long ago", adding "I am sure that the victory will be ours". On the other hand, in the course of an interview in Hongkong on the 8th January with a correspondent of the Hongkong Telegraph, reported in that paper on the 12th January, extract attached), he adopts a cordial attitude towards myself and speaks of the friendly relationship between Great Britain and China being closer cemented and all the differences, mistaken impressions and the like being easily straightened out.

3.

in

A

Mr. Tai Yan-ts'oi, who is the

at brother-in-law of Mr. Sun Fo, and who is/present in Hongkong, has communicated to me through Mr. Kotewall very secretly as a matter which, if divulged, might endanger the life of Mr. Sun Fo a statement that the object of Mr. Sun Fo returning to Canton is to drive both the Russians and General Cheung Kai-shek out of the Kuang-tung province; that the attempt will be hazardous and may not succeed, for Borodin and the Russians are undoubtedly supreme in Canton; but that an under- standing

taking has already been come to with a large mumber of

the officers in the army of Cheung Kai-shek to mutiny against their Chief; that eneral Ng T'it- sheng (Wu Teh-chen) is sitting on the fence; tha the attitude of Kuang-si province is doubtful and that one million dollars are needed to finance

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