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First Annexure.
The Chinese and the British delegation have, in their respective statements, defin- ed the anti-British boycott issue in terms which now necessitate resort to an impartial Commission of Enquiry for its settlement. The Chinese delegation formally propose
that:
(a) such a Commission of Enquiry be constituted,
(b) the Commission is to be made up of a Chinese and a British Member with a Chairman to be agreed upon, whose country is not directly involved in the dispute,
(c) the Commission shall be empowered to determine the question of responsibility for the Shameen-Shakee shooting on June 23, 1925, and to make recommen- dations for the complete and final settlement of the resulting anti-British boy- cott in the Liang-Kuang,
(d) the Nationalist Government and the British (including the Hongkong) Govern- ment agree to be bound by the findings of the Commission and to carry out and enforce any and all recommendations made by it,
(e) the Commission is to be opened at the earliest possible date, and
(f) in order to meet possible difficulties of the British in the case of witnesses who have already made written statements to them on the case and who are dead or cannot be traced or otherwise cannot attend before the Commission, such statements can be submitted at the Enquiry.
Second Annexure.
The Chinese delegation have asked for a written statement on the loan proposal put forward at the meeting of July 21
The details of the necessary formal agreement would take some time to settle and would be outside the duties of this conference, but the main features of the proposal can and should be indicated now.
The proposal is made in order to show the sincere good will which Hongkong feels towards Canton, and in order that Hongkong may assist in the development of Kwang Tung in some way which may be of mutual benefit to the province and to the Colony. We realise that the prosperity of Kwong Tung and the prosperity of Hongkong are inseparably bound up together.
We
The object of the loan would of course have to be mutually agreed upon. have suggested a loan for the development of the port of Whampoa, because, while we think that that object would benefit Hongkong only indirectly, we are anxious to show our good will by selecting an object which we understand is favoured by the people of Canton. We are quite prepared to consider any similar object of mutual benefit which may be suggested by the Chinese delegation.
The adoption of the Whampoa proposal would be subject to both parties being satisfied that a scheme sound from the engineering point of view is possible at a reason- able cost. The amount which we have in mind is a sum of about $10,000,000.
One object of the loan, whatever main object be chosen, would have to be the con- struction of the loop line to connect the Canton-Hankow railway and the Canton-Kowloon railway.
Adequate safeguards for the proper expenditure of the funds and for the payment of interest and the repayment of capital would have to be provided.
A condition of the loan would be the complete cessation of the boycott and of all other anti-British manifestations throughout the territory controlled by the Canton Government.