Hongkong, Aug. 12.
The local press reports the arrival of H. M. Consul-General, Mr. J. F. Brenan, from Canton, It is understood that he came to Hongkong. in connexion with the settlement of, ithe boycott. At the present moent, each party is carefully conidering the proposals of the other, jand it is expected that negotiations will begin again within a fortnight.
Mr. Eugene Chen, Canton's Minister of Foreign Affairs, recently expressed the following—sentiment: "We are on the eve, if, Met already in the midst, of events [that may cut in the rocks of destiny a new road for our people, It is not our wish that we should enter Jon this new road with the British variance with us. But we are in situation in which the decision to the future is largely theirs'
Experience has shown that, when 'a party in Canton was driven out Jot power, its successors invariably renounced all undertakings entered into by the former regime, If the present Canton Nationalist Government is not a permanent one, it be risky to deal with it' any important matters. As far is known, the northern exp. ig making headway, Many believe that the capture of Wuchang and Hankow is not an impossibility.
Hankow and Wuchang fall into the hands of the South, the Nationalist Government will increase its prestige and power. Then Hongkong will be in a position to Jconclude any terms with Canton in full cognizance of its power and influence If the twin cities on the Yangtze are captured by the Jarmies of General Chiang Kai-shek, the Hongkong boycott will, it is believed, automatically come'
Text read from the printed page and cleaned; old type leaves the occasional error.