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156
(2).
Hostilities continue in Szechuen and Kueichow, one side
having support of Wu Pei-fu and the other that of the
Kuomintang.
Sun Yat-sen appears genuinely desirous of remain-
ing on friendly terms with Hongkong and professes to
be favourably disposed to proposal for immediate con-
struction of Canton-Hankow junction line, probably
owing to his desperate need of funds. Government of
Hongkong are anxious to avail themselves of opportunity
for carrying out this long overdue work but I fear
that there is no prospect of inducing present Peking
administration to agree to any financial arrangements
for providing a margin of free money for Sun Yat-sen,
which is what the latter needs: while conclusion of
independent loan with Sun Yat-sen would be against our
policy apart from grave financial risk entailed in
advancing funds to latter before he has established his
position which is still most uncertain and likely to
remain so until Kuang-si general declares his hand. I
am reporting today by post on the subject of con-
struction of loop line.
Financial situation of Peking administration con-
tinues to go from bad to worse.
Minister for Foreign Affairs resigned two weeks ago and no successor has yet been appointed.
No comments yet.
Private notes are available after approval.