This Document is the Property of His Britannic Majesty's Government, and should be returned to the Foreign Office if not required for official use.]

(F 2531/194/10)

CHINA.

Cypher telegram to Mr. Pelairet, (Peking)

Foreign Office, 27th June, 1925. 3.p.m.

No. 120.

713

1. As I see the situation we seem to be confront

with a movement against the "unequal treaties" and ex- territoriality which is primarily nationalist in

character but is supported by the Bolsheviks. For some time past skilful propaganda has prepared the way for this movement, and, owing to the strong feeling

aroused by the Shanghai casualties, it seems to be now

to some extent supported, at any rate not opposed, by

moderate opinion.

2. Quite apart from the possibility of further outbreaks of violence, the danger seems to be that this movement will gather such momentum as to frustrate the hope, which is involved in our tariff conference policy, that, if there is some measure of order and peace in China, we may be able to remove at least some of such legitimate grievances as may be shown to exist under present treaties in a fair and reasonable way without affecting our vital

interests and to the benefit of China and the powers

alike. Obviously this danger will be greatly enhance

if a conflict should break out between Feng and Chang (who apparently is embarrassed) in which Feng might

be

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