Correspondence on Clementi's views on draft Customs Agreement; railway bridge near Canton blown up; victory over Kwangsi forces claimed by Canton, and Wang Ching Wei is reported to have been expelled from the party in Nanking; military and naval reports; reports of Wang Ching Wei's presence in Hong Kong are denied; Wuchow occupied by Canton forces led by Admiral Chan Chak, who allows river traffic through to Winchow; Canton-Kowloon railway bridge 26 miles from Canton blown up; political report on progress of the rebellion led by Cheung Fat-fui and his Iron Army against Nanking; discussion on failure of Chinese authorities to take action against pirate bases in Bias Bay; apparent success of Canton in repelling Kwangsi forces; financial and military control of North China being assumed by Yen Hsi-shan; reports of Wang Ching-wei having given an interview in Kowloon in early December; Chiang Kai-shek apparently endeavouring to break up any pact between Yen Hsi-shan and General Feng; Minister for Foreign Affairs announces abolition of extra-territoriality with effect from Jan 1st; discussion on possible British reaction to this announcement; discussion on texts of indemnity notes, relating to Anglo-Chinese Indemnity Agreement.