4

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prefectures of Chao Chow and Chia Ying-chow and in

Kwangsi the Western portion of the province including Pai Se and Ssu Chêng prefectures and particularly the

important business centres of Pai Se and Lung Ch'uan

are in the hands of the Reds. Southern Fukien and

the Ch'êng Tu and Chung King prefectures of Szechuan complete the list. Undoubtedly many of the self- styled communists are merely brigands, but there is some indication that the movement is being supported

and organized by returned students.

On the 23rd

5. In Hong Kong also, there have been signs of an attempt at communist activities. of June some twelve agitators were arrested in King's Park and on the 25th another twenty agitators carried out a demonstration in Queen's Road and a local paper,

the Siu Yat Po has been proscribed on the same grounds.

These attempts however do not seem to excite any response on the part of the population of Hong Kong which is happily inclined to the peaceful pursuits of its ordinary

livelihood.

6.

Owing to the heavy expenses incurred by the war Fan Ki-mo the Financial Commissioner of Canton has submitted a proposal that under excuse of improving the circulation of Canton notes a Government loan to the amount of $15,000,000 should be raised. For this

purpose bonds of $100, $50, $10, $5 and $1 will be issued and people will be allowed to buy them, if before 15th of September 50% in Canton notes and 50% in cash,

if

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