CO129-482 - Public Offices - 1923 — Page 401

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F'23-trg4 08:10 saibreqoet

For some time it was generally believed in Chinese

circles that this dispute would be solved without rec ouse

to arms, but this belief is now weakening. Personally, I

find it difficult to see how hostilities can be avoided;

for on the one hand General Ts'al will not be willing to give up his lucrative command, and on the other hand it seems impossible for the provincial government to leave him there without abandoning all pretence of authority over the leaders of the provincial forces. Further, a severe

blow would be dealt to the provincial constitution and to the schemes for the reduction of the Punanese army which are an integral part thereof.

That there is no settlement in sight is supported by the fact that Chao Feng-ti and other military commander are feverishly engaged in allecting money from all sides to meet the expenses of the punitive expetition. The generals at eng chow, Tsingshih and elsewhere have com- pelled the guardians of the salt godowns at those places to open them and deliver large quantities of salt, the property of the salt merchants. This salt has been forced on the retail dealers and other merchants in exchange for cash, the military officials not only retaining the unpaid third of the salt tax by the cash value of the salt itself. At one place 860,000 worth of salt was misappropriat ed in this way, at another 842,000 worth and at another 834,00 worth. Chao Heng-ti, on his side, has ordered the Changhsa magistrate to produce 200,000, leaving to the latter official to devise the means of raising this sum. He has likewise "borrowed" $200,000 from the Changsha Chamber of Commerce and $300,000 from the Puai salt merch- ant 6.

As a sop to the latter the amounts of which they have already been robbed in other places are to count as ad- vandes on this loan. The provincial government also plans

to raise