Co

SECRET.

Jes to:

Peking No. 83.

Canton No.337

30001₤

77

RECEIVED

17 OCT 1927 COL. OFFICE

GOVERNMENT HOUSE,

HONGKONG. 15th September, 1927.

Sir,

no15

Aud Secret

17 NOV 1927

In my despatch Secret (2) of 1st September,

1927, I expressed the opinion that General Li Chai-sum,

having returned to Canton after a period of watchful waiting

at a distance, had decided that he was firm enough in the

saddle to apply the whip and spur. Subsequent events

continue to confirm that view. In the first place, no

sooner had the bankers and merchants surrendered to the

method of armed robbery used by the Cantonese Authorities

for extracting a loan, than it was announced that the chief

author of this scheme, Mr. Ku Ying-fan, the provincial

Finance Commissioner, had been dismissed and even that his

arrest had been ordered. Various reasons have been

announced for this step, but the most probable seem to be

that Mr. Ku is not regarded by General Li as a congenial

colleague, that he persists in his attachment to the Nanking

party and that he appropriated (so it is said) some two

millions of the forced loan for the use of the nationalist

forces on the Yangtsze. Be that as it may, it is certainly

the fact that Mr. Ku disappeared hastily from Canton with

as many of his satellites in the Treasury as could get away.

So far as relations between Canton and this Colony are

THE RIGHT HONOURABLE

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

concerned,

&c.,

&C.,

&c.

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