CO129-500-3 Canton situation- governor's despatches 29-7-1927 - 1-9-1927 — Page 42

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Facia. Nai le

possible saviours of Canton from its new, communistic masters. When the power of Marshal Tseung Kai-shek increased, and the hopes of the reactionaries faded further and further into the

distance, General Li's independence dwindled;

and the Nationalist Government appears now to

consider him to be a staunch Kuomintang adherent, as his name appears among the Provincial Commis-

K

sioners for Kyang-tung, whose appointment was

reported in my secret despatch of the 26th May, 1927 He is commander of the 5th Nationalist

Army".

2. A memorandum of the interview is enclosed.

I am disposed to think that General Li's presence

in Hong Kong had the accidental character which he

attributes to it, and it is a fact that "Master

James Lee", the son of General Li, left for Seattle

yesterday in the s.s.President Grant under the

care of Dr. and Mrs. Cadbury of the Lingnam

University at Canton, with whose family he is to be brought up in the United States of America.

But General Li's mention of the country property

of his former ally General Ngai Pong-p'eng may be

of greater significance than appears at first sight.

Rumours of a disaster to the new "Northern Expedi-

tion" against the Communists in Hunan and Kiangsi

grow in strength, and forces appear to have been

withdrawn from the protection of Canton and even

from such notoriously "red" areas as the East River and the Luichow peninsula. It may be that General Li is exploring the possibilities of

Hong Kong

* C. 30001 / 27 C. [No. 12]: not printed. † Not printed.

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