174 ENCO

Referring to the political situation, Mr Burkhill mentionad the fears which existed in Chinese circles with whom he came in amtact in the flour business of another civil wer brocking out in the North. It appeared

that the "ole marm" in Menomurin were disantisfied with

"018 the arrangerenta rade by Chang Finwoh-liang with Kanking, holding that the Young Yarahal had exceeded his authority. iscussing the subject of communism and the little progress which had apparently been made by the Chinese Government in their sati-communist campaign, kesers. Brow and Loalis sid that there was some slight improve- ment noticeable in Hipei and Hunan bat nane in kiangai.

E. THICHMAN,

26/8/1931.

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