Correspondence on the outcome of legal action over the new taxes, in a test case; a further appreciation of the situation in China by Hang Shih-y to Sir Shou-son Chow and R. H. Kotewall; customs administration; report on the political and military situation in China by Clementi, and representative of General Ngai Pong-ping; border incidents; the agreement between the Seamen's Union and the Steamboat Company; upsurge in immigration to the colony; speech and letter from Chiang Kai-shek in the Canton press; financial crisis in Canton - the Central Bank suspends payment and $5 million is forced in loans from local merchants; piracy on steamer flying British flag - one Briton killed, and Brenan advises retaliatory naval action and senior naval officer agrees; rumour that tonnage dues, and wine and cigarette taxes to be relaxed; customs collection in Swatow postponed; retaliatory action against Taipinghu and Shekki taken over piracy; military situation at Swatow; extradition of Chinese criminals from Hong Kong to Canton and elsewhere in China; peace time garrison in Hong Kong; raids on communist headquarters in Swatow; the Ataman Semeroff tries to raise a White Russian army to invade Siberia and seeks, officially, "assistance to recover fifty eight million gold roubles which he alleges were placed in the custody of the Hong Kong and Shanghai Bank by Admiral Kober" - Clampson instructs all consuls to have no dealings with him; possible attempt to re-introduce the picket system in Canton and measures to be taken against it; Clementi advises strong action to deal with it; preparations for a possible blockade of Canton; Japanese goods boycott - pickets confiscate British goods from Hong Kong steamer; boycott seen as money-making scheme for pickets; British government policy of threatening a blockade of Canton but avoiding any real action; activities of Ku Ying-fen, Finance Commissioner in Wuhan, and General Li Chai-sum; the forcible release by HMS Moth of the Chinese owned British steamer Tai Ming; end of the China Steam Navigation Company strike; naval reports on piracy and the retaliatory action taken at Shekki and Tarpinghu; report on frontier incidents; press reports of attempts by Feng Yu-hsiang to settle the dispute in the Kuomintang (KMT) and on Chang Kai-shek’s resignation.