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Mr. Wong Kam-yuen please see the first paragraph of my despatch of the 14th April.

4.

Moreover, it cannot be said with certainty

that the communist peril has been more than scotched. The dismissal of Marshal Tseung from his command and his replacement by Marshal Feng Yu-hsiang (the "Christian General" and tool of Moscow) has been definitely decreed

by the Hankow clique. His expulsion from the Kuormin

tang is also announced by the same faction. He, on the

other hand, has unsparingly denounced the Hankow clique

as the enemies of Chinese Nationalism, and has taken

very vigorous action against their supporters wherever

he has been able to lay hands upon them. He holds

Shanghai and Nanking and has declared the latter to be

the Nationalist capital. But the Communists appear to

hold, besides Hankow, the whole of Hunan and Kiangsi

provinces; and despite rumours of an understanding

between Marshal Tseung and Marshal Chang Tso-lin the

Fengtien forces continue to threaten Nanking, if not

Shanghai. There is also in today's newspapers a hint

of a split between Marshal Tseung and General Li Chai-sum.

The cause of their dissension is said to be the matter of

punitive funds for the further progress of the "northern/expedition

but I cannot at the moment of writing arrive at any

clear picture of the position.

5.

It so happened that, at the time of the anti-

communist coup in Canton, I had before me three protests

the by the Canton authorities, all three made prior to week-end

purgation. The first was against the naval expedition

to Bias Bay, the second against the action taken in Hong

Kong with respect to the Sun Yat-sen memorial service

(see my secret despatch of the 18th March) and the third

against

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