CO129-500-2 Canton situation- governor's despatches 30-6-1927 - 8-11-1927 — Page 9

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serious being in the Kiung Chow peninsula.

2. But the Bress of 31st August contained a really important announcement. Some time ago it was reported

that negotiations were in progress for an entente between

General Li Chai-sum and General Cheung Fat-fui, a Cantonese,

who had at one time been the former's second-in-command.

General Cheung has in the last few months come to the fore as

commander of a considerable section of the Hankow forces,

and one of his latest exploits was to bar the advance of the

Nanking armies towards Hankow by capturing Nanchang, the

capital of Kiangsi, and expelling the two communist generals

above mentioned (who then retreated southwards towards the

Kwang-tung border). On 31st August it was announced that

General Cheung had arrived in Canton on 28th August and,

after placing himself at the disposal of his former chief, was leaving again to join his army in Kiangsi almost imediately. The reconstruction would, therefore, appear to

be based on a military combination. General Li Chai-sum has

already with him the Kuangsi forces under Generals Wong

Shiu-hung and Fan Shek-shang and at least the goodwill of

those under General Li Tsung-yan operating with the main

Northern Expedition. If to these are added the army of

General Cheung Fat-ful, the scheme of "a Monroe Doctrine for Kang-tung and Kuangsi" would seem to be taking a big step

forward.

3.

Two small matters tend to confirm the view

that General Li is feeling more safe in the saddle. In the

first place, he has been able to detach forces to deal with

the

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