- 3

called upon to move against Li Tsung-jên and Cheung

Fat-fui, decided to mutiny instead.

In this way

54

Nanning,with the arms and ammunitions stored there, came

under the influence of Li Tsung-jên.

At the time of

writing the disposition of the armies in Awangsi is

said to be as follows :

Cantonese: a little above Wuchow.

Cheung Fat-fui: at Kuei-lin and Liu-chow.

Troops formerly under

Lui Wun-vim and ong

Kuen (now revolted to

Li Tsung-iên:

at Sunchow and Nanning.

Li King-sui: at Luk-chau and Po-seh.

Tsok-p'ak)

3. It is unlikely that the Cantonese are in a position to subjugate Kwangsi by force of

arms or

that their opponents will be able to drive them back and capture Canton. The situation, therefore, may remain one of stalemate until defections on one side or the other change the balance of power, or until an entirely new situation develops in north and central China. The Reorganization Party has apparently established a pied-à-terre at Po-seh where Yu Tsok-pak and Li Ning-sui are alleged to have set up a government on Soviet lines, but definite information regarding conditions in that district is lacking.

Meanwhile it is reported that Hoihow and

4.

19

and the island of Hainan have been recaptured by

the Cantonese Navy.

Reports also continue to appear

of

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