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British and presented it today, after which we expressed
hope that Chinese delegation would abandon these methods
of public controversy and settle down to negotiate an
agreement.
Mr. Chen then asked to speak with me privately when
he urged that Hongkong should help Canton government
with money to get rid of 40,000 persons who were unemployed
and living on a government dole as a result of the boycott.
I replied definitely that Hongkong would not pay a cent
for this purpose which was regarded as blackmail, but, in
order to enable Canton Government to show their people
that they had got something out of the settlement Hongkong
would lend money for development of province and I
mentioned their willingness to make properly secured
loan for construction of Whampoa port together with loop
railway if amount was within reasonable limits. Mr.
Chên
appeared much impressed with Whampoa idea and it is
possible solution may be reached on these lines. Next meeting is on July 21st.
Repeated to Foreign Office No. 31.
Acting Consul-General.
"