CO129-512-1 Political situation in China- and Canton 30-11-1928 - 23-5-1929 — Page 66

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

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66

12.

It is as yet too soon to venture a guess

as to the outcome of these new developments. The

immediate result has been the restoration in some

degree of confidence in the Canton currency.

This

But

A

a source of anxiety is the uncertain attitude of the Kwangsi generals. Should they endeavour to regain control of Kwangtung, fighting may be expected to

occur almost at once. So far, however, no

definite pronouncement has been made by them.

further complication, as I have already noted, is

the presence in Kiangsi of the Fourth Army, under

Generals Cheung Fat-fui and Mau Pui-nam.

army is recruited from the Ha-sz-fu in Kwangtung

province, and contains some of the best fighting

material of the Nationalist armies, having earned

the nickname of "Ironsides". Its leaders and

soldiers are, however, tinged with Communism and

are greatly feared on that account by the Cantonese,

who suffered severely at their hands in 1927.

is unlikely that a large body of Cantonese will be

willing to remain indefinitely exiled from their

own homes. So long, therefore, as the Fourth

Army remains in being near the Kwangtung frontier,

it will be a distinct menace to the preservation of

peace in that province. A more remote, but

nevertheless a possible source of danger is the

contingency that the Hankow armies, now fighting

Marshal Chiang Kai-shek, may, if defeated, retreat

southward with the intention of establishing

themselves once more in Kwangtung. The general

outlook, therefore, although better than it was

last week, is still menacing; and the elimination

It

of

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