CO129-512-1 Political situation in China- and Canton 30-11-1928 - 23-5-1929 — Page 23

Enclo. No. 5.

Enclo. No. 6.

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negotiation.

One thing seems certain.

Any

settlement must involve either a united control of

both provinces or at least the payment of a subsidy

to Kwangsi by Kwangtung. The former subsidy

amounting to $350,000 a month, representing the

share of Kwangsi in the combined opium monopoly,

has been, or is about to be, discontinued on the

orders of Nanking and the necessity of retaining

this source of revenue no doubt helped the Kwangsi

commanders to reach the decision to overthrow the

Canton administration.

10. In this connection I attach the enclosed

account of an interview between Dr. Kotewall and

General Leung Wing-son, who it will be remembered earned the gratitude of the Hong Kong Government

for the assistance which he rendered at the time of

the 1925 boycott both in procuring workmen for

essential services and in combatting intimidation.

I

11. Among the adherents of Marshal Li Chai-sum

who have been deprived of office as a result of the

fall of their patron may be mentioned, Mr. Ma

Chiu-shun, who for some time held the post of

Minister of Reconstruction in the Canton Government, and who has been appointed to represent China at

the International Labour Conference at Geneva.

enclose an extract from the Canton Gazette of

April 17th, 1929, which is of some interest in this

connection. It is significant that Mr. Ma requested, through His Majesty's Consul General, that special police protection should be given him during his stay in Hong Kong on the ground that as

the