CO129-520-1 Chinese situations 20-12-1929 - 27-1-1931 — Page 44

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44

Enco. No. 1.

bv

illustrated by a document found/the Hong Kong police

concealed on the person of a passenger by river

steamer. This document was in the form of a report

by agents sent to investigate the organization of

the communist party in Western Kwangtung and in

particular in the district of Wan Fau on the Kwangsi

border. The writer describes a mutiny of the

garrison in the district city, its suppression, and

the unsuccessful attempt of the communists to assist

the mutineers. He refers to negotiations for the

"control" of a large body of bandits operating in

that area, and while lamenting the apathy of

"comrades" in certain centres points out that in

others no recruits to the party are forthcoming as

all the eligible candidates have joined the local

brigands. It is, I think, clear that while the

present administration is in no serious danger from

outside attack the internal state of the province

is rapidly deteriorating and the progress made

during the past few years in restoring peace and

order has been succeeded by a retrograde movement.

4.

I enclose an extract from the local

press containing the report of the speech made by

the Chairman of the Board of Directors of the

Hong Kong and Shanghai Banking Corporation at the

annual meeting of Shareholders held in Hong Kong

on the 22nd of February. This speech includes

an interesting review of events during the past year.

5/.