CO129-510-10 Financial loan from Hong Kong government to Canton Provincial government 3-4-1928 - 3-8-1928 — Page 18

Extracts from hi Mh. Lampson's repart on his

tom in bhina

(Ong. placed on 52702/28

17

I

One of the subjects I discussed with the

Gover mor was the question of some form of financial

assistance to Canton. This is one of urgency to the

Canton Government, but I readily agreed with Sir C.

Clementi's opinion that the Hong Kong Goverment must

stand aside, however anxious they might be to see the

present regime in Canton more firmly established.

learnt however that informal discussions had in fact

being going on to see whether there was no possibility

of the Chinese merchants in Hong Kong raising a loan,

but from the conversations I later had with one or

two of the leading Chinese residents of the Colony I

gathered that even this was unlikely to succeed at

present as the Chinese community of Hong Kong had not

yet recovered from the effects of the boycott and the

bad conditions of trade of the last year or two:

there was also the obvious factor that the credit of

the present Canton Government is practically nil.

This question of financial aid to General Li Chai-sum

is a most important one and my feeling is that, as it is

to our interest that he should remain in power and

consolidate his position, we should certainly not dis-

courage any attempt that may be made in Hong Kong, or

elsewhere, to help him to meet his financial difficulties,

provided he can establish the necessary credit.