Correspondence on reported expulsion of General Fend from National Government party; successful attack by Yunan forces against Kueichow; military and naval reports on evacuation of Wuchow by Kwangsi troops; presentation of draft commercial treaty by Lampson to Dr. Wang in Nanking; belief that General Fend will retire abroad; visit of T.V. Sung, Minister of Finance, to Hong Kong en route to Canton; rumours of arrival of three Kwangsi leaders in Hong Kong, indicating an end to Kwangsi opposition; agreement of Dr. Wang to payment of further £15,000 to cover Chinese indebtedness to Hong Kong University, but Clementi urges larger British grant; willingness of Sun Fo (Minister of railways) to negotiate for completion of Canton-Hankow railway with Hong Kong firm, for which part of Boxer Indemnity funds might be used; reported movement of General Feng south towards Hsing-au, south of Shensi; military reports; Lord Passfield suggests asking Lampson to negotiate over claims for debts arising from Kowloon-Canton railway; details of discussions on indemnity settlement between Lampson and Dr. T.C. Wang, with texts of indemnity notes; production of draft commercial treaty by Dr. Wang; military reports; arrival of General Chiang in Peking, to persuade Yen (Hsi'-shan) not to join with General Fend in retiring abroad; Foreign Office advises that no funds will be made available for railway construction if existing contracts and agreements are ignored by China; request from Dr. Wang for assistance in enabling Hu Mien to function properly as manager of Chinese Telegraph Office; political report; delay in settling commercial treaty and indemnity agreement.