CO129-502-6 China- general situation 7-1-1927 - 3-3-1927 — Page 118

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defence is necesa

It must be remembered that *****

chaos and anarchy exists throughout Chion and that, except

in places actually occupied by their troops, none of the

region 1 suthorities con maintain law and order.

Banditry and

piracy in the immediate vicinity of the Hong Kong frontier are

typical of the state of affairs elsewhere.

Porreaching altern-

tions proposed in status of foreigners in China are not warranted

by present conditions.

Presa telegram from Hankos asya that negotiations with

O'Malley were broken off resterday by Chen owing to the

despatch of British troops. If this is true and if thereby warlike

operations become inevitable it is my firm opinion that the

Southerners are most vulnerɛble at Canton

nd that the beat

means of retrieving our position on the Yangtze would be

a blow at Canton. In view of the situation at Hong Kong

I urge that one of the Brigades now on the way should be

stationed bere in any case.

Governor.