CO129-490 - Public Offices - 1925 — Page 131

129

(1)

3.

constituting a serious menace to the safety of our gunboats up the river.

One definite case of two junks owned by Hongkong Chinese being seized by Whampoa Cadets from British waters in Mirs Bay and taken by force to Chinese territory and beached in spite of shots being, exchanged with British police. *Foxglove", "in vicinity, was promptly order there and cargo was subsequently returned to the junks which were refloated and taken back to British waters the next morning (16th August).

I proceeded unofficially to Canton in "Petersfield" on 18th (accompanied by the Major General Commanding Troops in

China) and discussed the general situation with E.M.Consul General, the Senior Naval Officer, West River and also met the foreign

Senior Naval Officers.

4. From the facts outlined above and from reports and

conversation with various officials and civilians it appeared to

me that there was no sign or suggestion of matters becoming normal

or any action being taken which would lead to any improvement in

the situation.

5. I therefore decided to put before Their Lordships a suggestion which might break the power of those who were controlling Chinese policy and actions in South China which were steadily ruining local British trade and appeared to contravene definite treaties, and I despatched my telegram No. 28.

6. A change of atmosphere seems to have occurred in Canton and district within the last fortnight during which period considerable nervous activity has been noticeable.

7. On the 19th, Liao Chung Kai, reported to be the most powerful of the Bolshevik Chinese members of the Canton Government, was assassinated; also Chen Chiu Lin, Editor of a notoriously anti-British paper, who was with him. About this time rumours were current of considerable 'anti-red' forces being collected at various points in Kwangtung with a view to a moderate Government being formed and the Soviet advisers (and

virtual rulers) being dismissed.

8....