460
has been Marshal Wu's representative in South China for the last three years, and I enclose copy of a Joint memorandum in which they give an account of the statements which he then made. It would appear there- from that Marshal Sun has given a definite undertaking to Marshal Wu to co-operate in the fight against Bolshevism in central and southern China: but that Marshal Tu is short of funds for a campaign against General Cheung Kai-shek. Three months ago he needed $4,000,000 for such a campaign, but now he needs an additional $2,000,000
making $6,000,000 in all. This money he hopes to get from Great Britain, but he does not ask for a dollar to
be handed over until satisfactory proof is given that
Harshal Sun will co-operate with him against General Cheung
Kai-shek and that a proper plan of campaign has been
formulated.
3
There is a curious coincidence between the sum
above named and figures given in a message which reached me on the 11th August from Mr. L. M. Beytagh to the effect
that Marshal Sun had informed him direct that he had money
enough for the campaign against Canton, if it were success- fully completed in a month, as he believed it would be; but that, if it were prolonged, he would need $2,000,000 which he suggested that Great Britain might guarantee in the event of its being required. Mr. Beytagh inquired whether the Hongkong Government could arrange this. I caused a negative reply to be sent and I have similarly told Sir Shouson Chow and Dr. Kotowall that the Hongkong Government will not finance civil war in China.
4.
A Reuter's telegram of yesterday's date from Peking,reports that Nan-k'ou pass has been captured by the troops of Marshal Chang Tso-lin and that Peking is
beflagged in consequence.
But this event does not remove
the menace of the Kuo-min-chun from the north; and a
telegram