NO SECRET.

Copies to:

Canton No. 282.

Peking No. bb

Sir,

HONGKONG.

RECEIVED 157 AUG 1927

OFFICE

7.73

GOVERNMENT HOUSE,

29th July, 1927.

no3qinc

8.1 OCT

Outwardly little of importance has

occurred at Canton since my secret despatch of

the 14th July. But a number of indications

suggest the approach of a serious change in the political weather. The most important of these is an attempt, on the 25th July, to murder General

Li Chai-sum by means of a bomb. Beyond the fact

that General Li's government feels anything but

secure in its hold on Kuangtung and Kuangsi all

is guesswork; but the following conjecture as to

the currents converging in Canton may be hazarded.

General Li Chai-sum is a Kuanghsi man and would

like to see the Liang Kuang provinces governed by

natives of that territory to the exclusion of the

non-Cantonese element represented by Marshal Tseung

Kai-shek and his subordinates. Chief among the

latter are General Ts'in Tai-kwan, who is commanding

the new Northern expedition from Canton against the

Hankow forces in Hunan and Kiangsi and General Wu Him,

who holds Wai-chow on the East River and was respon-

sible for the recent anti-British outburst there

THE RIGHT HONOURABLE

LIEUTENANT COLONEL L.C.M.S. AMERY, M.P.,

&c.,

&c.,

&c.

over the

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