Said to Have Been Resold to Peking, Canton not Having Completed Payment Hongkong, May 81.
A communique issued by the Canton Government says "A. protest has been lodged with the "American Consul-General against the removal of the Rabbit. Arsenal plant from Canton and its for the manufacture of arms the North. The plant is Government property. It was sold to the Government for Gold $1,600,000, of which G.$1,200,000 have' been paid, leaving "an unpaid balance of. G.$400,000. There had been an arrangement that pending the payment of the balance the plant should be stored at Canton in a godown. The vendors, who are of American nationality, are no longer.
ling to continue the arrangement, and have entered into a contract to this Government nor arranging for the re-payment of the G.$1,200,000,, "There is now a Japanese steamer at Canton with a specially recruited gang of labourers from Manila who begun preparations to load the ty so-called Arms Embargo Agreement, it is an interesting question whether the removal of the plant from Canton and its re-sale to, any other party in China would not constitute an American breach of the agreement vis-a-vis of the other signatories. On the other hand, the tention of the plant by this Government could not be so construed since the United States was not a party to the Agreement when the plant was imported to Canton."—Reuter's Pacific Service.
Text read from the printed page and cleaned; old type leaves the occasional error.