- 4 -
it is strong enough to press the issue.
44
4.
The position on the Yangtsze is extremely obscure. Advances by the Fengtien forces, victories of the Nationalist forces and mobilisation of the
One "Christian" General are all reported at once. thing, however, is certain that the Hankow "government" is in a state of panic. Having killed all foreign trade, it is naturally without golden, or rather silvern, eggs to pay its troops. Its embargo on the export of silver has merely heightened the lack of confidence and made eventual ruin more certain. So desperate is its plight that it is reported to be advocating the return of the British Concession in the vain hope that this will revive trade and replenish an empty exchequer.
The influx of Chinese into this Colony continues, the excess of the arrivals (by water) over the departures for the week ending 1st May being over 6,000. It is hoped to resume through traffic on the Kowloon-Canton Railway today, and I anticipate that the land traffic will show similar results.
Foclo. No. 4.
5.
6. I enclose a further report by the Assistant Superintendent of Police, New Territories, on the position at our frontier. The matter of the demand on the s.s. "Tai Pang" has been notified to His Majesty's Consul General at Canton and a strong protest has been addressed by him to the authorities there. This launch acts as a ferry between the Tam Sui area and Hong Kong, carrying passengers and goods between Sha Ù Ch'ung in Chinese territory at the North East corner of Mirs Bay and Tai-po station on the British section of the
Kowloon-Canton Railway.
7.
The decision of His Majesty's Government to
address