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the Chinese Government from repudiating the foreign loans or abrogating all the foreign treaties on the ground that the conditions had altered in the intervals since they were concluded.
I have instructed His Majesty's Consul General at Canton to inform the Viceroy that his method of treating a solemn contract is wholly inadmissible, and that if it is persisted in I shall be forced to recommend His Majesty's Government to take serious notice of it. Mr. Scott was also directed to state that the Governor of Hongkong complained of His Excellency's unfriendly attitude; that it was a matter of notoriety that his treatment of political agitations directed against foreigners was at least sympathetic; that in this matter of the Canton-Kowloon Railway there was scarcely a doubt that he encouraged and perhaps led the local agitation which was only part of the general antagonism throughout China against foreign enterprises; that he could not be too strongly warned that such a course was highly dangerous; and that it was his duty in China's interest to check such movements and not to encourage them. I further requested Mr. Scott to make His Excellency thoroughly understand that the hostile and unreasonable attitude of Chinese authorities like himself towards British enterprises had already excited considerable attention in Great Britain.
On January 9th I had a conversation with His Excellency Tang Shao-yi on this matter, and yesterday I sent him Chinese versions of the draft final agreement with the British and Chinese Corporation and proposed working agreement