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in Canton and plotting against both China and Great Britain. I strongly urged the Canton

Authorities to inquire into the organization and

activities of these men against whose continued

residence at Canton I took the opportunity of

lodging an emphatic protest. I further requested

that these Russians should be expelled from Canton

with a view to the restotations of friendly relations

and of normal trade conditions between Canton and

Hong Kong. I added:- "It has been, and is, the traditional policy of the Hong Kong Government to prevent this Colony being used for political in- trigue against the Chinese Government and I shall steadfastly adhere to that policy and take steps to expel any who evade it. I must, however, first

be satisfied that the Canton Authorities on their

part will reciprocate by refusing to allow the Kuang-tung province to be used as a base for political intrigue against this Colony, and I should regard the expulsion of the individuals above referred to as a proof that the Canton Government is in earnest

in this matter". The Canton Government has never

made any answer to this letter.

7. I am firmly of opinion that this Government should a bide by the sanctuary principle, under which political refugees are allowed to remain in Hong Kong so long as they give no overt cause for complaint. General Ch'an Kweng-meng has given no overt cause for complaint. He is an old man and a spent political force and his expulsion from Hong Kong at the instance of a Bolshevized Canton Soviet, which allows Great

Britain constantly to be spoken of as "the enemy",

which

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