Correspondence on Canton Government's report on Bias Bay pirates and the S.S. Soliviken; the protection of British subjects of Chinese origin when in China; Canton Government increases the surtax by ten per cent; Communists and Russians flee Swatow; visit from Luk Wai-chau, General Li Chai-sum's intermediary, to see Clementi; troops led by General Huang Shao-hung, arrive in Swatow; Canton-Kowloon Railway sabotaged; Nung Man (Lung Main) and General Li Fuk-lam and the activities of Wong Fuk-chi in Bias Bay and the case of Lau Lei; issue of government bonds in Canton to raise money for the disbanded strikers; General Ghang Fa-kuei takes control of Canton from General Li Chai-sum; report that Wang Ching-wai is returning to Canton with five more Russians to form a separate Government with Chang Fa-kuei; continuing sabotage on the Canton Kowloon railway; press report in Swatow that Chou en-lai, Kuo Mo-jo and other Communists arrested on arrival in Hong Kong; reports on the war between Fengtien and Shensi; urgent need to obtain supplies of opium to maintain Government opium monopoly; request for help from Singapore because of problem with Government supply; new levy at Canton, and French, Japanese and British protests.