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This Document is the Property of Hla Britannic Majesty's Government, and should be
returned to the Foreign Offine if not required for official use.
C
Decode.
CHINA
Acting British Consul General (Canton via
Hong Kong).
24th July, 1926.
D.
10.55 8.m.
25th July, 1926.
R.
9.00 a.m.
25th July, 1926.
No.32.
(R).
313
My telegram No.31.
At meeting on July 21st Minister for Foreign Affairs presented verbally Chinese proposals for settle- ment (2 grps. undec.) Shameen incident. Guarentees against repetition involving regulation of Shameen defence measures and use of gunboats, and compensation in respect of victims.
B. Boycott. Hongkong to assist Canton financially in disposal of unemployment question. In other words, strike compensation,
The latter demand was definitely refused. As re- gards the former, we replied that no changes in defence measures were possible until adequate guarantees for safety of foreign residents were forthcoming on the Chinese side. As to compensation for victims, we were unable to agree to this as we maintained that the Chinese were responsible for the incident. At the same time, we pointed out that British claims on account of damage and losses amounted to a large sim, but that we were willing to leave the question of all claims for subsequent adjustment.
We then put forward our counter-proposal a develop- ment loan as a means of immediate settlement, mentioning
Whampoa
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