Report on military and political situation in Canton, where Cheung Fat-fui has been driven out of Kwangtung, and the Central Bank has been virtually destroyed; vast extent of opium smuggling operations in Hong Kong; current manager of Chinese Telegraph Office insists he has authority from Peking to remain in office; opening of fourth plenary session in Shanghai; rescinding of extra luxury tax on foreign imports in Swatow; report on conversation between Dr. R.H. Kotewall and Mr. Fu Ping-ch'ang on political situation in Canton; offer by Canton Government to purchase HMS Robin for anti-piracy work; report on visit to Hong Kong by General Fung Chuk-mau, Finance Minister in Canton Government, and meeting between him and Clementi, together with Mr. E.R. Hallifax, Sir Shouson Chow, Dr. Kotewall, Mr. Luk Wan-chan and Mr. Leung Kwai-tin; request by Brenan to authorise import permits for gunpowder to be used in quarrying; closure of fourth plenary session in Shanghai, resulting in re-registration of Kuomintang members, election of government and military councils, and organising of a Northern expedition; Lampson to visit Macao en route to Canton; military and political report on situation in Canton; Amery approves exchange of official visits with Li Chai-sum; Lampson forbids sale of HMS Robin to Canton Government which would have established an awkward precedent; discussion on successor to post of Inspector-General of Customs, and on possible resumption of emigrant trade with British emigrant ships being inspected by customs.