The report current in Peking, alluded to in Mr. Rodney Gilbert's telegram last week that Mr. Tang Shao-yi is preparing to set up a seat of Government at Hangchow under the patronage of Gen. Lu Yung-hsiang, is categorically denied by Mr. Tang. The fact that the report is unfounded, Mr. Tang adds, removes the possibility of hostilities between Kiangsu and Chekiang which were said to have been exercising the minds of politicians in the capital.
A statement by Mr. Tang Shaoyi, who has again taken up his residence in Range Road, readily explains how it is that the report arose. For years Mr. Tang has [been insistent that the seat of the Central Government must be removed from Peking, so that politics may be freed from the old traditions and old shackles. Looking at ithe present crisis Mr. Tang telegraphed to several Parliamentarians a day or two ago urging them to get away from the influence of Peking, and this combined with his jkmown preference for Hangchow has given-rise to the report. Hang-
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