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be felt and there would be little patriotism to fortify the people in enduring the hardships of a blockade. Moreover the regional Governments in China are in chronic need of money, and any drastic interference with trade such as would

result from a blockade would disorganize the collection of the revenue and cause serious financial embarrassment to the regional Government concerned.

(3) "Assuming a state of war..

possibly North China".

It is true that before the 18th century China was more or less independent of foreign trade. But matters have changed since then and, when the export of rice and flour was prohibited from Hong Kong in 1925, there was a very sharp rise of prices in Canton. As regards arms and ammunition, General Li Chai-sum has since the coup d'etat of last Good Friday already found himself much embarrassed. The supply from Russia has been cut off and he has turned for help in this respect first to the Hong Kong Government, then to the Macao Government and then to a German mercantile firm (See recent telegrams from Governor of Hong Kong to Colonial Office).

(4) "A blockade of South China...

against the British".

We do not believe this would happen and the

contrary

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