Enclosure Bo. 1.

137

CONFIDENTIAL.

INFORMATION GIVEN TO HIS EXCELLENCY THE GOVERNOR BY MR. LIANG SHIH-YI.

(Translated and taken down almost verbatim).

We know that Hong Kong is commercially and

politically bound by the closest ties with Kwongtung.

We also know that the two places have benefited by

Marshal Li Chai-sum's rule in Kwongtung. From the

time the Marshal resumed the headship of the

Government in Canton at the end of 1927 he has worked

assiduously for three things, namely, (1) placing

labour under proper control, (2) the suppression of

banditry in the province, and (3) the rehabilitation

of the currency; and he has succeeded in all these

three objects. In September 1927 Marshal Li

informed the Governor of Hong Kong of his intention

to achieve the first of these three objects.

has kept his words.

He

Since China became a Republic, no one has

succeeded to the extent Marshal Li has in making the

province of Kwongtung peaceful. Since he began

work to place labour under control, there has not

been one single incident in which either labourers or

students have created any serious trouble.

this Kwongtung has of course profited, as has Hong

Kong.

From

Although trade has not revived as it should

have, owing to the multiplicity of levies in the

province, and to the financial stringency, one can

feel that a good foundation is being laid, and

that brighter prospects are in store for us.

Against this happy picture, however, there

are

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