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MONCOPY.
From the Comissioner for Foreign Affairs
To H. B. M. Consul-General.
23rd. day of February, 1913.
460
11100
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ORİNOYTAJ MİNİLİ
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$1.5.A to V .of me. Biot
Export of Limestone.
I am in receipt of verbal instructions from the Tutu to the effect that he had received your communication of the 12th. instant criticising unfavourably the action taken by the Kuang- -tung Government in relation to the Limestone question, and stating | that the Green Island Cement Company were entitled to compensation.
As he informed you several times in the course of con- -versation at a recent interview, the Tutu is unable to see the force of these contentions. You have misunderstood his point and still maintain your own argument, with the result that the settle- -ment of the case hangs fire and we are both dissatisfied. I am, therefore, obliged again to endeavour carefully to explain the watter at issue.
Your letter under acknowledgment states that, according to the Industrial Commissioner, unless the Green Island Cement Company give up their claim for compensation on account of losses incurred, he will refuse to retreat from the position he has taken up. You add that the claim is an equitable one, but, in order speedily to determine an intolerable situation, it will be with- -drawn provided certain conditions, four in number, are agreed to. Now it appears that these four conditions are nothing less than a sugestion that the Government undertake the completion of the con- -tracts in lieu of the merchants. This I fear is unreasonable.
The Tutu believes as the Industrial Commissioner told him that you, on behalf of the Company were preferring an in- -defensible claim, and his idea is that this point should not be raised. He does not mean to ask for the waiving of a reasonable claim. The validity or non-validity of the claim depends upon whether or not this Government has violated the treaties.If in your opinion the treaties have been broken, I am willing that we