Correspondence on outbreak of fighting in Kwangsi; [Clementi leaves for Manila]; crisis facing Chiang Kai-shek and Nanking Government, with widespread movement against him; reported occupation of Kueilin by Chang Fat Kuei; political report; punishment of some Generals of the Kuominchun who opposed the Central Government; reported destruction of railway west of Layang by the Kuominchun; crushing of rebellion in Kwangsi, followed by march of Canton forces to Human frontier against Chang Fat-kuei; Lord Passfield intends to publish correspondence with Clementi about the practice of Mui Tsai. Chang (Fat-kuei) is proceeding to Wu Kang; Acting-Governor agrees to publication of Mui Tsai material; Chiang remains in Nanking; threat by Dr. Wang of preventive measures if proposed change to customs agreement with Hong Kong is not made; report that Chiang was wounded by bullets and will soon be replaced in office by Feng Yu-hsiang; Chinese ready to approve draft customs agreement; Chiang leaves Nanking with Admiral Chen to visit Hankow on a punitive expedition against rebels; military and political situation report.