The draft agrcethent between Mr. O'Malley and Mr. Chen in
regard to the Hankow and Kiukiang Concessions has not yet been signed. On Tuesday Mr. O'Malley stated that the further delay was caused by Mr. Chen's doubtful interpretation of Sir Austen Chamberlain's assurances. Mr..Chen has raised several new objections, and there are, no doubt, other reasons besides doubt about Sir Austen's meaning for Mr. Chen's elaborate procras- tination. Chief of these is the successful fresh advance of the Cantonese troops, who have inflicted a serious re- verse upon Marshal Sun Chuan-fang, the defender of Shanghai. The Cantonese are now approaching the important centre of Hangchow. It looks as though they will soon overrun the whole province of Chekiang,- as it is reported that there is demoralization in Sun's army, and that many of his men, in the familiar - Chiaese faifilon, are going over to the enemy. •
