COPY

PRINTED FOR

USE

Eastern

COLONIAL

No 104

OFFIC

Enclosure No. 2.

3

258

COPY

From

To

No. 64

TELEGRAM.

H.M. Consul General, Canton.

H.M. Minister, Peking.

Despatched July 19th, 1926. Code.

Confidential.

My telegram No. 63.

Negotiations began on July 15th with an opening address by Hinister for Foreign Affairs welcoming British delegation and expressing hope in general terms that settlement would be reached which, while assuring to

British nationals friendly and profitable market in South China, would enable Chinese people as represented by nationalist government to continue unhindered with work of unifying and modernizing China.

Conference then adjourned to following day when Chinese delegation produced long written statement

giving their views on origin of boycott which they trace back to what they describe as massacre at Shanghai on May 30th and in course of which they try to fix on the British the responsibility for the Canton incident

of June 23rd.

A

Before putting forward any proposals for a settlement

they desired to have our views on this statement of the

case which they proposed to publish. We protested that

to conduct negotiations in the press would inflame public

opinion and make an amicable settlement of controversial points extremely difficult but Mr. Chên insisted on what he called the how diplomacy. We accordingly prepared a

written reply refuting the allegations made against the

British

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