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co-operate with His Majesty's Government in exacting compensation (with this object in view) for the Sainan outrage. I am however somewhat averse to the employment of a threat which it would be (as I have shown) extremely difficult to carry out, and which in any case would result in creating considerable ill-will towards this Colony on the part of the Viceroy and his colleagues, with whom I
shall presently have to negotiate several important matters such as a Joint Working Railway Agreement, and the restriction of the issue of subsidiary coins &c.—matters
of extreme importance to this Government. His Majesty's Secretary of State for Foreign Affairs suggested that in
the matter now under discussion the friendly action of this
Government should be urged as a reason that the Viceroy should comply with the demands made and I understand from the Consul-General that he has repeatedly used this argument
but without effect. If the threat of withdrawal of
these friendly offices on the part of this Government were
made operative the situation created would in my opinion
be more difficult than that which would arise had the
Colony even sent troops to assist in the suppression of
piracy.
I regret that this despatch has extended to
such length, but I have desired to put Your Excellency very
fully in possession of the reasons which prompt me to
deprecate the proposed action except in the very last
resort, and that in my view would not arise until some
overt act of hostility had taken place, which amounted to
a rupture of friendly relations between China and Great
Britain.
5.
By opinion has not been asked as regards the
action which has hitherto been taken (though by your
courtesy I have lately been placed in full possession of
All