CO129-480 - Governor Sir Stubbs - 1923 [4-7] — Page 65

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establishing himself, though it is too early to speak with

any certainty, as it is not known what reinforcements Wu Pei-fu can send. Chang Tso-lin is assisting Dr. Sun with funds. (I gathered that Er. Yeh is here for the purpose of arranging this). Chan Kwing-ming cannot move from Waichow because of the presence of Hsu at Swatow,

5.

Mr. Liang emphasised the possibilities of a dangerous situation at Shanghai. Lu Yung-heiang, Tuchun of Cheklang, and Ho Feng-lin, Military Commander in Shanghai, with some 10,000 troops, are at loggerheads with Wu Pei-fu who is egging on the fleet at Shanghai to attack them; the fleet consisting of 3 large and 10 old mall vessels. The Admiral, To Shih-kwei, is not with the fleet, and the Commanders of the ships have declared their independence. If, however, the fleet should go over to Wu Pei-fu, he would attack Shanghai and there would be serious fighting round

the city, whose supplies might be cut off. Kr. Liang insisted that the danger was a very real one, and he suggest- ed that the Consul-General should be warned.

6.

Mr. Liang, supported by Kr. Yeh, argued strongly that the opportunity should be seized, in spite of all obstacles, to construct the loop-line. I pointed out the difficulties and, after much discussion, they said that they would explore the possibility of building it privately with capital subscribed by Chinese merchants. The Chinese Govern- ment would certainly be prepared totake it over as soon as it was a fait accompli, and in any event, with a large Central Station, it would be a paying concern.

7. Mr. Liang said in conclusion that the policy adopted by this Goverment towards Dr. Sun had given the greatest satisfaction, both in Hongkong and in Canton.

V. FLETCHER,

Sd.

25th April, 1923.

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