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His Britannic Majesty's Consul-General presents his compli-

-ments to the Tu Tu and has the honour, under instructions from

His Majesty's Minister, to formulate, on behalf of the Green Island Cement Company, a specific claim in respect of the losses

which they have suffered sustained as a consequence of the action of the Kuangtung Government in cutting off supplies of limestone.

Since the interview on the 28th. January, at which this

matter was discussed in tripartite conference, various letters have passed between the Consulate-General and the Bureau of

Foreign Affairs on the lines then suggested by the Tu Tu, but

unfortunately they have not resulted in any modification of the

status quo ante. The local representative of the Company has call-

-ed on the Commissioner of Industries, with a view to ascertaining

on what basis a modus vivendi, satisfactory to both parties,

could be arranged but has been categorically informed that, unless

all idea of a claim for damages were abandoned, further negotiat-

-ions would prove futile.

All friendly methods, therefore, of arriving at at solution

having proved abortive and having been exhausted, His Majesty's

Minister has no alternative but to notify the Chinese Government

that a claim for damages past, and, should the present hostile

attitude be maintained, to come,

lies against them and Mr. Jamieson

has accordingly the honour to inform the Tu Tu of this fact.

In doing so he would express regret that all offers, which

he has made as to purchase of stone quarried, and all proposals

which he has put forward as to continued working have been re-

-jected, also that his request as to explicit information with

regard to a settlement on "commercial lines", first mentioned by

the Tu Tu, has been ignored.

His contention that the Green Island Company's contracts

were carried out with the full knowledge and approval of the late

Imperial Government has not and cannot be refuted, and the

cardinal circumstance of the insertion in Ch'en Tu Tu's proclama-

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