Correspondence on the continuing negotiations between O'Malley and Chen over the British concessions; despatch of the Shanghai Defence Force and Chinese reaction to it; dilemma of granting de jure recognition to either the Northern or Southern Governments; observations by Amery on British policy towards Russian and Japanese activities in the Far East; the reorganisation of the Peking Government, including the dismissal of Aglen as Inspector of Customs; piracy in Bias Bay and its effects on negotiations in China; activities of the Chinese war lords; anti-foreign propaganda campaign in the South; difficulties in re-cyphering telegrams; Clementi's continued campaign to gain sponsorship for the University of Hong Kong from the Boxer Indemnity Fund.

Correspondents include L.S. Amery, O'Malley at Hankow, the Consul at Shanghai, Sir Miles Lampson, and the Admiralty.