CO129-512-2 Political situation in China- and Canton 31-5-1929 - 13-11-1929 — Page 25

4

23

General Ch'an Tsai-tong himself moved out to Wuchow.

These reinforcements were drawn from the Nanking

garrison and are described as household troops of

Chiang Kai-shek.

General Lui has been rewarded

with the Chairmanship of the Provincial Council and

a subsidy for the support of his army. The Fourth

Army remains at Shen Chow Fu but it is considered to

have shot its bolt. Reports from Shanghai suggest

that Cheung Fat-fui has disappeared and that negotiations are on foot for the submission of the

rebels. With the exception of Wuchow however the

principal towns of Kwangsi still remain in the occupation of Yu Tsok-pak's adherents and another

version of the story represents the Fourth Army as

pressing on towards Kwangsi some say in fact that a

detachment from this army has already reached

Kueilin but the general feeling seems to be that the

crisis is over.

6. The gravity of the situation was reflected

by the fluctuations in the currency, by the temporary suspension of silver payments by the Central Bank,

and by the influx into Hong Kong during the fortnight ending on October the fifth of some eleven thousand

persons in excess of the number leaving the Colony

during that period.

7. It had been known to the Hong Kong Police

for some time that a Communist agent from Shanghai

was in the Colony attempting to stir up trouble

amongst