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in French Indo-China, whence it would be easy for him
to enter Kwangsi at any time, should he so desire.
They were clearly apprehensive of a renewal of civil
war and after dinner they hurried back to Canton by
river-steamer, saying that they could not spare time to
stay the night in Hong Kong. They were most friendly.
They expressed much regret at my impending departure for Singapore, but they assured me that they would be
friends with my successor "whoever he might be".
8. My latest news is that Cheung Fat-fui has effected a junction with the Kwangsi generals in the neighbourhood of Mung-kong and is threatening Wuchow. Anti-government forces hold Kuei-lin, Ping-lo, Liu-chow and Nanning and a general advance on Wuchow seems possible. A large number of empty Cantonese transports has proceeded up river from Wuchow. An attempt to build a bridge of boats across the West River, just below the mouth of the Fu River at Wuchow, is in progress; and other defensive measures in and around Wuchow indicate that an endeavour will be made to hold that town until the Cantonese troops, some way up the Fu river, can be withdrawn. It is believed that the empty transports
have been sent to assist a retirement and some detachments have already gone down river, although no
All communication general evacuation has yet commenced.
with Nanning is severed.
9.
The prospects in Hong Kong for the Chinese New Year settlement are not unsatisfactory, having regard to the general depression in the business world. Those who have suffered most are dealers in rice, sugar and piece goods, the latter having been hard hit by the
recent
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