CO129-416 - Public Offices - 1914 — Page 256

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So that, compared with the figure of 168,112,520 dollars-the estimated expendi- ture submitted to the National Assembly-economies amounting to upwards of 30,000,000 dollars have been effected, and the expenditure actually sanctioned by the Cabinet has not been exceeded.

With regard to the actual receipts of the Central Government, no returns are yet available. It will be remembered that the Budget estimated the total revenue during the half-year at 51,336,880 dollars only. However, we may say that the amount of receipts for the first half of the second year of the Republic is the minimum that will be collected by the Chinese Government. The reasons are obvious. The administra tion, completely disorganised by the revolution, has not yet been restored to its normal condition, and the Government has not received the regular remittances from the provinces upon which it could formerly rely. The condition of provincial finances is now being subjected to rigorous examination, and we can only repeat the opinion that has been so emphatically expressed recently, that China's financial salvation depends upon the ability of the Government to enforce the collection and remittance to the National Treasury of those taxes which have always been regarded as national, as distinguished from provincial, revenue.

[35653]

No. 105.

Sir,

Colonial Office to Foreign Office.—(Received August 2.)

Downing Street, August 1, 1913. I AM directed by Mr. Secretary Harcourt to transmit to you, to be laid before Secretary Sir E Grey, a copy of a telegram from the Governor of Hong Kong respecting the protection of the Chinese section of the Canton-Kowloon Railway in the event of hostilities between the northern troops and the Kwangtung rebels.

Mr. Harcourt would be glad to be favoured with Sir E. Grey's observations on the Governor's suggestions.

I am, &c. (For the Under-Secretary of State),

H. J. READ.

Enclosure in No. 105.

Governor Sir F. May to Mr. Harcourt.

(Confidential.) (Telegraphic.) P.

[Received July 29, 1913] CONSUL-GENERAL at Canton and I concur in thinking that, in the event of hostilities between northern troops and Kwangtung rebels, rebels may seize and perhaps destroy the Chinese section of the Canton-Kowloon Railway. There are two large bridges at Sheklung, a third at Kensui, and a fourth Shektan respectively, I mile and 6 miles north of Sheklung; and the destruction of either first two would take twelve months to repair. Gunboats could assist in the defence of first two bridges, but I would suggest that His Majesty's Government should consider what action, if any, should be taken for the neutralisation and armed protection of the railway. I have spoken to the General Officer Commanding, who concurs, and considers that troops for protection can be spared.

[35843]

No. 106.

Mr. Alston to Sir Edward Grey. (Received August 3.) (No. 182.) (Telegraphic.) R.

Peking, August 3, 1913.

SOUTHERN rebellion in China: General situation. Central Government continue generally successful in Yang-tsze Valley. Rebel forces based at Nanking are retreating down Tien-tein-Pukow line, and two divisions will probably desert to northerners. Northern forces in Kiangsi are driving the rebels towards Nanchang, and latter are not expected to offer serious resistance. Kuling is no longer within area of operations. Rebel attacks on Shanghai arsenal have been discontinued during the last four days. Woosung forts remain in the hands of the south, but their capture is expected shortly. Position in Hunan and part of Hupei

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