CO129-492 - Governor Sir Clementi - 1925 [12] - 1926 [1-5] — Page 527

:

J

.

+

at di cowly dre

irimbilnos AMPA -12

Mad Sc

508

Government appointed under the direction of the Nationalist Government Mr. Li Chao-huan aa Managing Director of the Chinese Section of the railway: that Hr. Li Chao-huan happened to be absent from Canton and, therefore, Vr. Li Cheng-yi acted for him, and that the former has now returned and is taking up his post. Mr. Sun Fo also made the significant remark:- "The Nationalist Goverment (i.e. the present Canton Government) is the only real Goverment of China and, therefore, the Canton-Kowloon Railway should be placed under the control of the Nationalist Government". Mr. J.F.Brenan, His Majesty's acting Consul General at Canton, telegraphed on the 8th May to His Majesty's Minister at Paking inquiring whether, in view of the present political situation, he should insist that the new appointment should receive approval in Peking before it is recognized by the Engineer- in-Chief and the Chief Accountant. Sir R.Macleay replied on the 11th May:- "I see no reason for interference by insisting that British staff should refuse to recognise new appointment. Latter should, of course, be approved by Peking and Mayers is endeavouring to get into touch with Minister of Communications on the subject: but, in absence of any Goverment here, it may be difficult to get them to move in the matter at present". Accordingly on the 15th May Mr. Brenan wrote to the Commissioner for Foreign Affairs at Canton acknowledging the notification of the new appointment and adding:-" I trust that the Canton Government will come to an understanding on the subject with the Ministry of Communications at Peking, so that the appointment may be in order from the point of Tiew of the loan agreement”.

8.

Mr. Brenan has also reported to His Majesty's Minister at Peking in a despatch, dated the 17th May, that the Canton Government has abandoned the idea of direct payment of blackmail by this Colony to the Canton Strike Committee with a vieɛ to ending the boycott, but entertains hope of a large loan for constructive purposes. "The projects they