CO129-391 - Acting Governor Claud Severn Governor Sir May - 1912 [7-8] — Page 146

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put her in a better position. Hence his advice. Mr. Hallifax has been unable to see Kong Hung-yan who has gone to Canton. I have little doubt that the Chinese Merchants of Canton and Hongkong would welcome the re-organization of the administration of the

Canton Province under tactful and unostentatious British super- -vision and advice, backed if necessary by financial assistance

which would run to about £1,000,000 a month for say a year till

native taxation were placed on a proper footing. I have also

little doubt that if the Provincial Goverment could rely on the

troops to support them in inaugurating the system, which would

scarcely be noticeable by the general public, the population would speedily acquiesce in the arrangement. The doubtful point is how far the troops could be trusted to resist any demonstra- -tions by a mob which might resent even the semblance of the loss of independence. I am assured that if the Provincial Government were to accept English advisers confidence would be so far restored that there would be no necessity for financial assistance from the British Treasury for Cantonese in Hongkong and abroad would contribute willingly in advancing funds for immediate needs.

.18. Having regard to the circumstances which I have endeavoured to describe, and to the vital importance to this Colony of the preservation of the peace in the Canton Province. I venture to suggest that His Majesty's Government should lose no time in endeavouring to make arrangements whereby if the Six Power Loan is not negotiated means may be devised for coming to the assistance of the Centon Covernment by means of a small loan, which if no other series is available might be made by this Colony on such security as the Provincial Government may be able to arrange and on condition that the Frovincial Government accepts the advice and financial supervision of one or more English Officials of administrative and financial experience. If it can be arranged at the same time that a change can be made in

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