3.
+
that the whole of China might regard it as an illustration of our helplessness and as cvidence of the success scored by the Bolsheviks against us.
5.
113
Bonciliation. Until the recent conversations
with Hongkong broke down, it seemed possible that a settlement might be arranged. These hopes were, however, disappointed owing to intimidation and to pressure brought to bear by Russians and extremists. Are the Can- tonese demands still the same five which were reported in Canton despatch to Peking No. 15 of June 29th (1) apology for incident of June 23rd; (2) punishment of officials; (3) withdrawal of naval unita; (4) return of Shameen (5) compensation? What objection is there to direct negotiations between Hongkong Government and strikers?
It is essential that we should know, before we can hope to deal successfully with Canton, what are their real or professed grievances
-
1.
e.g. recognition of Canton Government, Customs independence, interference with telegraphs by Hongkong, retention of Shame en in its present fortfified state, etc. What are their grievances If they are genuine they must be met. There is also the
fiction that Peking controls Canton, and it must be carefully con sidered whether the time is not near at hand. if it has not in fact actually arrived, when this fiction should be abandoned: its effect seems to be merely to
hamper our action at Canton, whether friendly or hostile. I should be glad to have your considered opinion.
It is only natural that, so long as Canton roceives arms and money from the Russians and nothing
from us,
some proportion of the Cantonese at all events