This Document is the Property of His Britannia Majesty's Government, and should be

returned to the Foreign Office if not required for official use.]

CHINA

Decode.

Sir R. Macleay. (Peking).

D.

R.

November 12th, 1926.

5.30.p.m. November 12th, 1926.

3.10.p.m. November 12th, 1926.

NO.

425. (R).

458

My telegram Nos. 354 and 363.

Minister of Finance is still in Tientsin awaiting

a more favourable moment to assume office and local

political situation has remained stagnant since the

date of my despatch No. 723 of September 30th, Develop-

ments are, however, nou expected in the shape of the

reorganization of government by Chang Tso-lin who

arrived at Tientsin from Mukden yesterday. It has for

some time past been rumoured that either Chang Tso-lin

or Tuan Chi-jui would be placed at the head of the

new government of north China,

On November 9th Doctor Koo, in his capacity as

ecting Prime Minister and Minister for Foreign Affairs

issued a circular telegram addressed to Chang Tso-lin,

Tu Pei-fu, and Sun and other northern leaders, in which

he stated that he had assumed the heavy responsibility

of office to meet the pressing emergencies of the moment and referring to his single-handed diplomatic

efforts in the national cause in connection with the

revision of unequal treaties, which had, however, like the tariff negotiations, been impeded by the weakness of the government, declared that he was exhausted

and

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