Enclosure No. 2.

CONFIDENTIAL.

رد

Honourable Colonial Secretary,

Yesterday at 2 p.m. General Chan Kwing-ming

(Chen Chiung-ming) rang me up on the telephone and

said that he would like to call on me at my house at

3 p.m.

He arrived punctually at the appointed

hour, and gave me the following information which is

reproduced as near as he gave it to me.

1.

I have been to Japan on a holiday and

afterwards to Dairen and other parts of North China,

and have just returned to the Colony. I remember

informing you at the beginning of last year that it

was my belief that the Nationalists would defeat

Chang Tso-lin, not by feat of arms but with money and

propaganda; and that thereafter there would be some

semblance of unification of the country. I also

said that such unification would be more in name than

in reality, and that before long there would be a split

in Chiang Kai-shek's own camp. My prognostications

have come true.

2. With such fears agitating my mind, I

resolved to do whatever I could to bring about an understanding among the real makers of the Republic,

such as Tuan Chi-jui and Wu Pei-fu, as well as among

the moderates now in authority. I believe that I

casually mentioned this idea to you when I saw you

for a short time at the beginning of 1928, and I

also told you that I was compiling a memorandum

setting forth my views. That memorandum has been

completed,

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