Correspondence on extent of damage in Canton caused by Communist outbreak in December; withholding of approval by Amery for appointment of a Cantonese as manager of Telegraph Office; request by Amery for information on prohibition of strikes and labour unions in Hong Kong; military report on fighting in Tsinanfu; advice by Lampson for Brenan to try to get alcohol tax reduced; [Naval] Commander-in-Chief disagrees with proposed withdrawal of two British battalions from Hong Kong and Shanghai; military report; agreement by General Officer Commanding, Hong Kong, that British forces should not be reduced, with which Clementi also concurs; withdrawal by Clementi of proposal to appoint a Canton nominee to the Telegraph Office; military report on situation in Tsinanfu, where fighting has stopped, but there have been Japanese civilian casualties; political report on situation in Canton; report on meeting of Corps Diplomatique about Canton surtax, which Japanese alone did not agree to; agreement of Lampson that British forces should not be reduced; possible solution to surtax issue might be a levy through the Washington surtax; details of fighting in Tsinanfu; instruction of Chang Tso-lin to his troops to cease fighting because of crisis with Japan; indefinite postponement of Canton surtax; appeal [from Chang Tso-lin] for British Government to persuade Nanking to respond to his appeal for peace; attempt by C. F. A. (Chu) to obtain British support for China against Japan, dismissed by Southorn; appeal by Nanking to League of Nations over crisis with Japan; discussion on military options for British troops following withdrawal of American troops from Tangshan; political report; details of shipment of French aeroplanes to Canton; imposition of 20 per cent surtax in Canton, to be collected by Surtax Bureau; report of piracy of a lighter; Southorn and Brenan press for urgent action from Canton against pirates in Bias Bay, following piracy of S.S. Tean; Lampson and Brenan advise against independent British actions against pirates.