Sept. 1.
General Chiang Kai-shek per~ mitied himself the luxury of optimism in discussing the trend of affairs in the South with the special correspondent of the United Press Association, Naturally the interview was mainly concerned with foreign—particularly Ameri~ can—opinion. The trader was told thathe could expect Improved conditions "in_Kwangtung to emerge {from the reorganization now proceeding under the supervision of the Central Government and the exe of the Generalissimo. Therein General Chiang Kaicshek unmistakeably showed that ho was well aware of the manner in which the former authorities in Kwangtung had attempted to carry out their policy of encouraging indigenous industries. Grossly discriminatory measures to the prejudice of foreign enterprise had been devised and applied. The benefits accruing to domestic industries were small, the damage done to the revenues of the Central Government was rapidly increasing, the private fortunes of certain privileged individuals were swelling at the expense of the unhappy people of Kwangtung. [No doubt General Chiang Kai-shek feels that the Central Government's satisfaction at being able to assert! its authority in Kwangtung Is miti-
Text read from the printed page and cleaned; old type leaves the occasional error.