Enclosure No. $2.

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CONFIDENTIAL.

Honourable Captain Superintendent of Police,

A Canton agent went to Shanghai and Nankin

a fortnight ago. He returned this morning. General LI

FUK LAM came down from Canton yesterday. The agent and

General LI lunched with Sir Robert Ho Tung to-day.

Both return to Canton by to-night's steamer. General Li

is not a close friend of Sir Robert's, and the agent

informed me that nothing particular was discussed. The

following points surmarise the latest interpretation

of Chinese events as given by the agent:

1. CH'AN FU MUK (MO), ( P✯ ✯), Minister for Labour

in Canton will be turned out and sent to Nankin during

the next two or three days.

2. His successor will probably be MA TSUI CHUN (5)

who assisted in the settlement of the Shameen strike

in 1924.

3. CHANG TSO LIN will have to retreat shortly to the

Kanchurian provinces.

4. ISIK SHAN (44) (YEN SHI SHAN) Tuchun of Shansi

will then occupy Pekin. He remains on a friendly footing with CHANG TSO LIN.

5. IM SIK SHAN has not made an agreement with Cheung

Ki Shek. Neither has he with TONG SANG CHI, though both the latter generals are trying to come to an

understanding with him.

6. TONG SANG CHI () and FUNG YUK CHEUNG (I.

✯ ) 【FENG YU HSIANG) have joined. The latter (FENG)

will declare himself an anti-Red at the appropriate

(to himself) moment.

7./

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