800.
copy.
sir,
31604
RECR
Race 23 SEP 09
34725
505
(SEP 16 1909
Peking.
August 24, 1909.
jon.
1.86 /09.
In my despatch No.263, of July 21, I expressed the
grave misgivings with which I had learnt of the direct
negotiations entered into by Messrs.Butterfield and Swire
with the Self Government Society, with a view to the settle-
ment of the "Fatahan" case. That my apprehensions were
but too well-founded is proved by the terms now accepted
by the British firm, as reported in the despatch from the
Acting Consul General at Canton, copy of which I have the
honour to enclose. The humiliating nature of these terms
is self-evident and I need say no more than that I fully
concur in the views expressed by Mr.Fox, as also in those
contained in the despatch dated August 9th, on the same
subject, from His Excellency the Governor of Hongkong to
the Colonial Office. Sir Frederick Lugard is undoubtedly
in the right as to the urgent necessity of bringing pres-
sure to bear on the Chinese Government in order to procure
Right Honourable,
Sir Edward Grey, Bart. M.P.
1
#ts. etc. etc.
the