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by the same section (the Zwangsi party) within
the nationalist fold.
3. I then pointed out that the proposal would
appeal to the Hongkong Government with greater force if the construction of the loop lino joining tha Hankow and dowloon railways were included, and I asked whether there had been any slackening of public opposition on this point. Mr. Chu intimated that while he and some of the other more enlightened officials in Canton realised the importance of the loop line and were in favour of it, political opposition to the proposal would still be so strong that Marshal Li's administration would not dare to put it forward. It will be remembered that when Marshal Li went to Shanghai in March last after Sir Cecil Clementi's visit to Canton, he was attacked in the Nationalist press for having sold Cant nese interest. to the imperialists by agreeing to the loop line in return for a loan. He was obliged to deny publicly that he had ever discussed the loop line or & loun. A
section of the Canton public genuinely believes that the loop line would deflect trade from Canton to Hongkong, and Marshal Li's political opponents would undoubtedly exploit this reeling to the utmost were he to accept responsibility for the lúðu.
On the other hand, if the proposal is put forward and packed by Nationalist leaders and the Nanking Gover ment, local opposition might be over-
rulea, for even in Canton the loop line has its
supporters. /
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