(2).
438
In all this political turmoil there has however so far been no recrudescence of anti-foreign movem:nt except for reports of anti-Christian demonstrations to be etaged on Christmas Day. These have elicited strongly worded warning against disorder from Peking garrison commander who is one of Feng's men. Chinese are generally too frightened and pre-occupied with their own affairs to give any attention to foreigners and there ere indeed even indications locally of (? explosion of) anti-Bolshevik feeling.
Inspector General of Customs who, es you are aware is inclined to be somewhat of an alarmist, is freely predicting complete disintegration of the govern- ment owing to lack of funds and is suggesting privately desirability of bolstering up some semblance of central government by continuing famine relief surtax under another name as to purpose, proceeds to be allocated to essential government expenses such as upkeep of ministries and payment of police under some sort of temporary foreign control to be exercised presumably through him, His panic is, think, mainly a financial one motived by fears of a raid on hia cuetoms. internal loan fund. In spite of civil war, customs revenues are pouring in end again beating all records so that he is likely to have a considerable surplus after meeting his consolidated internal loan service. This surplus he would like to retain for taking over service as soon as possible of 96,000,000 dollars loan which we of course hold should be dealt with in general debt consolidation arrangement with the rest
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