Correspondence on the imposition of the new surtax by Canton and foreign protest against it; Canton Consul wants firm and hostile action taken if necessary to support protest against it; transport of opium on Japanese vessel, from Bashire to Vladinstok; purchase of opium in Singapore; victory of Gengtien in the Fengtien and Shansi war; withholding of a visa for India to US journalist, Scott Nearing; report on political situation in Canton; reports that professed co-operation between General Li Chai-sum and General Chang Fa-kuei (in Canton) is false and latter about to supplant former - Cheung Fa-kuei considered left-wing; Amery criticises Clementi's policy over the sale of opium because of difficulty in defending British position in the League of Nations; military reports - Stansi - Fergtien war; US consul at Canton asks for information on piracy in South China to send to his government; raid on Seamen's Union by Canton police; case of piracy of Chinese ship in Bias Bay but tacked by the British navy under Boyle - (S.S. Irene, Chinese); case of Chief Clerk of the Secretariat, J. A. E. Bullock, suspended for forging two cheques on semi-official account; collection of increased surtax, according to commissioner for Foreign Affairs at Canton is dropped; Clementi argues that the Hong Kong Government must undercut the opium smugglers' prices to get rid of them; military report; Lampson and Boyle both disapprove of the proposal by Southorn to destroy Fan Lo-kong village; Nanking declares war on Wuhan; crackdown by Li Chai-sum on left-wing elements in Canton and supports Nanking in war against Wuhan; revival of left-wing activities of the Seamen's Union and raid by Canton police on it and Hong Kong-Canton Strikers' Union; political report; power struggle between Chang Fat-fui and Li Chai-sum; police reports on frontier incidents.