Kat

indication emeticasquarkanɗ His Majesty's

an prpand

Government to recognise the Canton Government

as independent.

This risk will however

be lessened if as we presume the Consul-

General acts as a member and not as Head

of the delegation. Secondly if the scope

of the negotiations be enlarged the number and

categories of the claim capable of being

put forward on eithe side in automatically

increased. As we see it the position as

to these claims is as follows. (1) Against

Canton claims for strike pay and compensation

for non-reinstatement can be advanced Hongkong

claims for losses due to the boycott (2)

against Canton claims for Shame shooting can

be advanced British claims for suffering and

1

31

15 Poking

claim from Canton see F.O. telegram/No.

138.

His Majesty's Government while

attaching importance to these claims is

prepared to leave the presentation of

them at any time during the forthcoming

negotiations entirely to discretion of

delegation whose hands they would not

wish to tie beforehand. But it would

of course be advantageous if the nature

and extent of these claims could be

brought to the notice of the Canton

Government at some stage of the negotiations

without imparing the prospects of settlement

and if possible before the prigfiple of

making a loan to Canton Government is

losses inflicted on Shame residents

(3)

But over and above these claims H.M.G.

possess

claims against Canton Government for damage to

property and persons of British subjects in

ave Kwangtung which not counterbalanced by any

!

claim

approved.

AMERY.

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