- 4-

92

Enclo

4.

ah'ên)...

The Political Bureau rules and

"the Moderates" are governing on sufferance, put in "the front pew to impress foreigners! I have satisfied myself after a week at Hankow that the Russian element

wants catastrophe and I doubt whether the moderates can "win. I look upon evacuation of Hankow and above as a "possibility, and, unless the so-called Civilian "Nationalist Government can bring itself to use force

"against the Hankow mob, as a probability. A few weeks

*will show, because the tension at Hankow can't go on.

"The so-called order in the British Concession is a sham.

"Underneath the position is rotten. The Canton situation

"you know is no parallel. The Cantonese can control

"their own people, but not the Hankow mob - the worst

"mob in China. Ch'ên and his friends have raised the

"devil and they are afraid. I was present when a mob

"tried to rush the Ministry of Finance and to beat up

the Minister - Sung. This was very helpful, because

"the mask came off and they can't deceive me. I told

Ch'ên that, unless he could control labour in Hankow,

"he and his friends would go under! Ch'en is useful

"of course to impress the outside world, but he cuts no

"ice with Borodin and Co., and he knows it. Our Customs

"position is desperately dangerous!"

I agree with this appreciation of the situation except that Sir Francis is plainly wrong in thinking that "the Cantonese can control their own people". It is not so. Labour is running uk in Canton as elsewhere in

southern China.

5.

c

The following documents, which I enclose, are also

of interest:-

(a) Translations of two reports on the Hankow and

* Not printed.

14

Kiukiang

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