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Q3A

16.

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equity on which to rest the British case, and when I have been able

to do that and to believe in the essential equity of my cause I

have generally found that when reduced to simple principles they

woke a corresponding reaction in the Chinese mind.

They share

our fundamental idea of what is Right and Wrong. They are,

moreover, Realists in thought, going in this far beyond us, possibly because their philosophy is far more divorced from and unclouded by

religion and sentimentality. One consequence of this is that

they are more apt to think in terms of immediate Profit and Loss, and of Expediency, provided they can find some moral justification or

"Face" must be precedent to ensure them against "Loss of Face".

safeguarded at all costs. Like us, they are commercially minded,

and if a basis of common self-interest can be established they

will readily indulge their aptitude for Compromise rather than

force some principle to its rigid and logical conclusion.

It cannot be denied that if the question of HONGKONG is

to be approached by both sides in a rigid and uncompromising spirit

and pressed to an immediate decision it may lead to an open breach,

for HONGKONG was taken from CHINA by War and lies within the mouth

of the one of her greatest rivers. But if it is approached in the

background of its historical past (in which it figures as a base

for the British sea-power which has sheltered CHINA from dangerous

aggressions) and in that of this war, in which it is a gage and

guarantee of British common interest with CHINA, and when it is shown that "Face" will be given to the Chinese in the municipal

arrangements in the New Order, I think it most unlikely that the

force of arguments based on the desirability for the energetic and

successful prosecution of the War, the establishment of Peace and

of the necessity for CHINA to have powerful and good friends in her

Allies, and particularly the British Empire in the dangerous post-

war period, will fail to have effect.

We have numerous good and tried friends among the

Chinese, and their political and economic fortunes are closely

linked with Anglo-American interests. Without Anglo-American support

they would be lost. They know it, and we know it. We must clear

our lines with the Americans and then tackle the Chinese firmly.

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