Сли

Decypher.

66

22

NO DISTRIBUTION.

Sir A. Cadogan. (Peking).

D. (by wireless) August 16th. 1935.

7.30.p.m. August 16th. 1935.

August 16th. 1935.

10

R.

No. 786.

Your telegram No. 294.

I have no "evidence" of attempts to promote a separa-

tist movement in the south-west and any appreciation must

therefore be based mainly on surmise and conjecture. It may

however be safe to assume that aim of Japanese policy is to prevent development of any strong Central Government in China (unless under domination of Tokyo) and presumably no opportunity of sowing discord between Canton and Nanking is overlooked. It is generally believed that Doihara's

visit to South China was to stir up latter against Nanking.

(2)

Canton has, I understand, so far shown no signs of accepting Japanese assistance and indeed there are con- crete indications that anti-Japanese feeling is strong in official quarters. In Kuang-si on the other hand Japanese have recently extended their influence and it is reported that a number are employed as advisers in the army for their air force and that Japanese aeroplanes have been pur- chased. This policy is disapproved of by Canton authori- ties who explain that it has been forced on Kuang-si by

economic necessity.

(3) His Majesty's Consul -General, Canton, reports that Marshal Chen has heard rumours that transport of munitions of war through Hongkong may not be allowed with- out a Narking huchso and is perturbed at what he describes as a stiffening of Hongkong's attitude towards him. It is hinted that in such circumstances it might be difficult

for

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