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the picket at the French bridge (as I always do and always will), When grabbed 1 hit him and two then attacked me with sticks. two more coming from behind with carrying-poles which they took from coolies. I was quite happy even so and had disposed of two; but after two blows on the head I could not see and fell I back in the direction of the gate, where they dragged me in. did quite as much damage as I received and I never fell nor did In the end there were eight or anyone come to my assistance. ten at me and they were in cach other's way. I went back two hours later the same way and they left me alone. It has really done much good, for Mr. C. C. Wu called and expressed regret There are now and even the strike authorities did the same. police detectives at the gate and the pickets have been forbidden by the Government to molest anyone. So I scored, I think. But the atmosphere up here just now is very odd and almost anything might happen at any moment. Things are not well at all."

9. The third important event took place on the 24th April, when General Ng T'it-sheng, the Cantonese Chief of Police, was suddenly relieved of office by the Canton Military Council at the instigation of General Cheung Kai-shek, ostensibly in compliance with a previous decision of the Council that military officers in command of troops should not at the same time hold civil posts. This action was taken by General Cheung without prior consulta- tion with General T'am Yin-hoi, the acting Chairman of the Canton Council of Government, or with Mr. C. C. Wu, who as Mayor of Canton is theoretically in charge of the Police Depart- ment. Dr. Lam Tsz-fung told Mr. Hallifax that Mr. C. C. Wu had resigned as a protest against the action taken by General Cheung, but that his resignation had not been accepted. This is General Cheung's second coup within the period of about a month and it appears to show that the military authorities in Canton are now dominating the civil authorities. It is not pos- sible yet to gauge the effect of this coup on the Canton situation.

10. There is now an increasing probability that the situation in Kuang-tung will before long be controlled by events in northern China. Sir Shou-son Chow, who is on a short business visit to Shanghai, telegraphed to me on the 24th April as follows!-

Both Wu Pei-fu and Chang Tso-lin appear determined to con- tinue the campaign against the Reds and are already making plans for an attack on Canton through Kiang-si and Fu-kien. The success of this attack depends largely on the attitude of Sun Ch'uan-fang, which again depends on the willingness of Wu Pei-fu and Chang Tso-lin to admit him as a partner on friendly terms. Their relations are improving and the prospects of relief through an anti-Red movement appear more favourable than pre- viously; and under these circumstances any financial assistance to present Canton Government might have an unfortunate effect." In transmitting this telegram to me Mr. S. Barton, the Consul- General at Shanghai, added that his information was in general agreement with that of Sir Shou-son Chow, with whose views as above expressed he concurred. It remains to be seen what will be the result of the visit paid by Mr. Sun Fo to Shanghai. He has

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not yet returned to Canton. Meanwhile everything now points. to the desirability of delaying any further definite step in our negotiations with Canton until the middle of May.

I have. &c.,

C. CLEMENTI,

Governor, &c.

ENCLOSURE 1 IN No. 19.

Office of the Commissioner of Foreign Affairs for Kwangtung.

Canton.

Aide-Mémoire.

On the visit of Hon. Mr. J. H. Kemp to Canton, when informal conversations were held between Mr. Chao-chu Wu and him, some progress was made in exploring the ground for the settle- ment of the strike and boycott. When the conversations were adjourned the Hongkong Government, through its Colonial Secretariat and without consultation with the Government at Canton, issued a communiqué to the Press regarding one of the terms under negotiation. From the point of view of procedure alone such a step is, to say the least, unusual. If Canton were to adopt the same procedure by publicly closing the door against negotiation on the term or terms upon which it wishes to insist. paralysis in the negotiations would inevitably follow.

Still animated by a sincere desire to bring about an early ter- mination of the strike and boycott, this Government finds its mediatory efforts made more difficult by the action of the Hong- kong Government. It will welcome any suggestions from the Hongkong Government for a way out of the impasse unfortu- nately created.

Canton, 26th April, 1926.

ENCLOSURE 2 IN No. 19.

The Honourable Mr. J. H. Kemp, K.C., C.B.EAttorney- General, held informal conversations at Canton on April 8th and 9th with Mr. C. C. Wu as a preliminary to the formal conference which is in view for the ending of the boycott.

The conversations were friendly and exhaustive, and Mr. Kemp took the opportunity of making it quite clear that the Hongkong Government would not pay strike pay or compensation for non- reinstatement of strikers, nor would it countenance any such pay-

ment.

The conversations were adjourned sine die, but it was agreed that they should be resumed before the meeting of the formal conference.

PUBLIC RECORD OFFICE

Reference :-

C.O.882/11

PUBLIC RECORD OFFICE, LONDON

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