Canton, Aug. 16.
An exodus of Kuomintang, or nationalist Party, members is taking place from Canton, their destination being Kuangsi, Hunan, Hupeh and Chekiang, where, it is said, important political developments have taken, or will take place. Unemployed politicians have been flocking around the Cantonese Army headquarters and the new Kuangsi Governor for some time.
General Hsu Shao-ching—a Cantones, and chief military attache to Sun Yat-sen, who is now conferring with General Lu Yung-hsiang at Hangchow on national issues~ has taken only a few supporters with him. Some of them are going on to Shanghai, apparently in order to ce-operate with him and others in some new movement.
The Cantonese leaders are opposed to the "Third Government" idea, that is, they do not look with favour upon the calling of a national convention in Hankow or Changsha for the formation of Federal Government among the several provinces. which are now independent of Peking.
In the meantime: the Government in Canton is'preparing for the expedition ayainst Peking through Hankow and by water. At least this report is being persistently circulated by the authorities here.
Text read from the printed page and cleaned; old type leaves the occasional error.