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during the brief days of the velvet glove. The
balance of opinion rather favours the view that
General Li Chai-sum's forces cleaned up the
diversion at Swatow (see the first paragraph of
my last despatch) more quickly than General Cheung
had anticipated and that the forces of Wong Shiu-
hung were back at Canton before General Cheung
could obtain complete mastery of the situation,
with the result that his rival has demonstrated
his capacity to resist supersession and is all the
CLO No. 1 stronger thereby. I enclose an interesting appre-
no?
INCLO 10. 2.
ciation of the situation by Ir. Luk Wan-chau, whose
nomination as General Li Chai-sum's representative is reported in the Governor's secret despatch of the 20th September (memorandum on the conference of the 19th September).
1
5. A further indication of the readjustment of the balance of power at Canton is to be found in a mandate by the Branch Political Headquarters abolishing the lilitary Headquarters both of General Li and of General Cheung and placing control of military affairs in a Branch Military Council in the list of members of which Generals Li Chai-sum,
Wong Shiu-hung and Li Fuk-lam appear first, second
and third, while General Cheung Tat-fui and his second-in-command, General Wong Ki-ts'eung are fourth and fifth respectively. A complete list of the members of the Council is enclosed
6.
The Anti-British Boycott Society has been drawing up a new code for the reimposition of the boycott and the coercion of merchants dealing in
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