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munitions from Chiang. Yen is apparently reluctant to renew the attack after the way he was let down by Feng last autumn. Chiang is not too sure of his control over Hankow, where the various Generals appear to be more concerned with personal intrigues than with the pursuit of the proposed northern campaign. In order to maintain central control from Nanking over the various Nationalist factions in the Wuhan district, Chiang Kai-Shek ordered Tan Yen-kai, the Chairman of the Nationalist Political Council, to proceed to Hankow, owing to the anti-Nanking attitude of Pei Chung-hsi and Cheng-chien. Tan Yen-kai being doubtful of his reception at Hankow has requested to be relieved of this duty.
In his search for support Chiang Kai-Shek has informed Chang Fa-kuei (the notorious Red extremist) that he is prepared to overlook the latter's Communist activities if he will in return join him in the northern campaign. Chang Fa-kuei, who was driven out of Canton last December, is at present with the Communist forces of Ho Lung and Yeh Ting in eastern Kwantung, where a reign of terror and frightfulness has been in existence for the last three months. The fact that Chiang is anxious for the support of such a character indicates how insecure he feels his own position to be.
Huang Fu, who became Minister for Foreign Affairs in the Nanking Government during February, recently issued a manifesto containing the aims of the Nanking regime. According to the manifesto it is hoped to open negotiations at an early date for the revision of foreign treaties, but in the meanwhile it is desired to cultivate friendly relations with the Powers, to remove all sources of misunderstanding and difficulty, and to protect the lives and property of all foreigners. It only remains to be seen whether the present regime will be any less anti-foreign in its policy than its predecessors.
Communist agitators having lately found it impossible to make any progress in Hupeh transferred their activities to Shanghai, but owing to recent raids on their premises in the International Settlement, French Concession, and Chinese territory they have now decided to leave for Moscow,
Owing to the extensive damage done in Canton city during the Communist rising of December last, the local Government is in desperate need of funds for relief and reconstruction work. To obtain this it is intended to levy a special surtax of 20 per cent., additional to the existing customs dues and Washington surtaxes.
H.M. Consul-General states that the need is both legitimate and pressing, and considers that the Canton authorities should be informed that although a formal protest would have to be lodged in order to maintain our treaty position, no further opposition to its collection would be offered by Great Britain.
H.M. Minister has recently visited various ports during his tour to South China, and was much impressed with the cordiality
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of his reception at Foochow, which was a striking contrast to his previous experience of Nationalist Governments.
At Canton, Sir Miles Lampson was entertained with marked courtesy and hospitality by Li Chai-sum, who abandoned his usual reserve and appeared to go out of his way to be friendly. Sir Miles had two long interviews with Li, when the whole political field was traversed in a frank and friendly atmosphere. H.M. Minister considers this visit and exchange of views can be regarded as a distinct success if Li Chai-sum can only maintain his present position as virtual ruler of Kwantung.
Sir Miles Lampson hopes to be able to visit Nanking at the invitation of the Nanking Government on his way back to Peking, provided that a settlement of the outrage of 1927 has been satisfactorily arrived at. To this end unofficial discussions are in progress. Chen-chien, the author of the outrages, continues to be one of the chief obstacles to a settlement: owing to his present influential position at Hankow the Nanking regime state that they are quite unable to take any disciplinary action against him, though he is the chief of the culprits whose punishment the British Government demand.
EGYPT.
King Fuad's reception in England in August 1927, was greatly appreciated by a large number of Egyptians, and the British Government took advantage of the favourable conditions so created to commence discussions with Egypt with the object of negotiating a Treaty of Alliance which would form the basis of relations between the two countries.
The draft of the proposed Treaty was under discussion in London during November, and Sarwat Pasha, the Egyptian Prime Minister, subsequently returned to Cairo with an agreed draft which was to be considered by the Egyptian Government.
From December 1927, until March 1928, the precise inter- pretation of various clauses in the Treaty and certain amendments suggested, were under discussion between Sarwat Pasha and His Majesty's Government. On 25th February, Sarwat Pasha at length made known the terms of the Treaty to his colleagues in the Egyptian Government, and endeavoured to obtain their agreement. The Treaty was also shown to Mustapha Nahas Pasha, the President of the Wafd (or Nationalist party), which is in a majority in the Egyptian parliament. On 2nd March, Sarwat Pasha informed Lord Lloyd, H.M. High Commissioner in Egypt, that his Government had decided to reject the Treaty, principally on the ground that it constituted legal recognition of the presence of the British Army in Egypt. The formal refusal of the Egyptian Government was handed in on 4th March, and Sarwat Pasha at the same time tendered his resignation of office to King Fuad.
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