The military situation in south China between the forces of Kuangtung and Kuangsi which has. recently assumed alarming preportions is at present presenting more reassuring prospect.
It was feared that the Kuangtung soldiers would attack Kuangsi Province from three quarters, viz. Pakhoi, Wuchow, and Huaitsap. At these three centres the troops had assembled and seemed to be preparing for an attack. This caused consternation to_prevail in many quarters. Many families of the well-to-do -classes. left their homes and hamlets and fled elsewhere for safety. The steamers, launches and river boats. were packed to their utmost capacity with frightened refuges: anxious to find a place of safety or seclusion. And as many of the steamers had to suspend operations for a time, not caring to take the risk of running through the danger zone where the opposing' forces were stationed, the rates on other steamers were often raised to an exorbitant figure.
At the cities above mentioned anxiety and fear were rife, and. nearly every day brought con-fioting rumours that were far from reassuring.
During the last few days a decided change has come over the people, for, the Kuangsi forces: seem to be Withdrawing from their: front line positions and each day sees fresh troops being towed to different districts farther removed' from the place of danger. This: seems to indicate that the threatened attack upon this pro~ vince has been averted. What the future holds is hard fo surmise.. Many prophesy renewed activity as the new year draws near, though: others are more hopeful and believe that diplomacy will prevail eventually and prevent bloodshed. It is well known that with Yunnan: opposed to the aspirations of the Kuangsi military party this pro~ vince is hemmed in on every side: and could not maintain a prolonged defensive warfare.
This political unrest has caused a serious slump in business, and' many of the launches that usually are overloaded with cargo are running light.
Text read from the printed page and cleaned; old type leaves the occasional error.