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of the 7th February last, and its enclosures, concerning my

conversations with Marshal Chen Chi-tang and Marshal Li Tsung-jen's

emissary, Mr. Wu Chin. I found it difficult therefore to resist

the inference that the Generalissimo's questions and suggestions

may have been inspired by Marshal Li Tsung-jen in the course of

their meeting that morning, or the apprehension that their

reconciliation may induce in the Generalissimo, in the absence of

his wife and Mr. Donald, a stronger immediate anti-Japanese policy.

Yesterday however I received, through the Peking Embassy, the

from following telegram the Commander-in-Chief, China Station:-

"Japanese officers off Pakhoi are referring to the

desirability of occupying Hainan Island as a security for

Chinese compliance. It appears that this proposal is not

new to Japanese and, taken in connection with their recent

may! harbour surveys in that region, my indicate the possibility

of this action being taken though not necessarily on this

occasion. Any Japanese encroachment in South China

naturally affects strategic situation of Hong Kong

adversely."

I now therefore surmise that the Generalissimo's conversation

reflected his reaction to the receipt of similar information.

6.

I apologise for the evidences of haste in the

composition of this despatch which are due to my desire that

you should have by air mail as early an account as possible

of my visit.

I have the honour to be,

Sir,

Your most obedient, humble servant,

A Caldecors

Governor, &C.

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