Foreign Office on November 20th., would undoubtedly be

23

attended with danger, and were such a course to become

necessary I would prefer to despatch troops under selected

Officers.

3.

It appeared, however, to me that

such a course of action would not be advisable. I pointed

out that Sir E. Grey's letter to Sir John Jordan (of

October 30th.) was precise in its terms. "His Majesty's

"Government, he wrote, must hold the Chinese Government

"responsible for payment unless compensation be forthcoming

"locally without delay". The claim for compensation had

been refused by the Viceroy though admitted by the Central

Government. In my view it did not devolve upon us to take

drastic steps here to compel the obedience of the Viceroy

to his suzerain. That was their affair vis à vis with His

Majesty's Government. Local action if carried beyond the

point already reached would almost certainly result in a

boycott of British trade which is already being widely

advocated by agitators. It would also probably precipitate

a conflagration which might ultimately set South China

ablaze, and it would certainly cause a rupture of the

friendly relations so vital to Hongkong at the present

moment in view of the Railway and Coinage and other

questions.

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