CO129-497 - Public Offices - 1926 — Page 237

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Russian Embassy received definite instructions from Moscow to endeavour to render the tariff negotiations infructuous by intrigue with responsible Chinese

officials.

In the Embassy itself there has been important developments. Karakhan has found it increasingly difficult to bring his own ideas into line with the instructions of the Third International, and it is possible that there will shortly be important changes of personnel. The programme for the present year has however been carefully considered and the

(1) In view following decisions have been arrived at.

of the failure to establish a Red goverment in Peking it is advisable to cease all activity in North China. (2) The province of Honan is no longer to be a centre for Bolshevik propaganda, instead, special attention to be directed to Western Mongolia, Kansu and Hsinchiang. (3) The Red movement in Canton to be

/ extended northwards.

This last decision is of very great importance, it is the logical outcome of the success which has hitherto attended Red propaganda at the treaty ports. We may now expect to see an intensification of the boycott at Canton and Hongkong (in fact there are indications of this already) and renewed activity at all the treaty ports up to Shanghai. The agitation will be directed entirely against British interests, and in accordance with the present Soviet policy every opportunity will be seized upon to embroil the Powers with one another and to take advantage of and accentuate their differences

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