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Whampoa port and loop line projects, provided these did not cost more than about £10,000,000.

While reserving this suggestion for further con- sideration, the Chinese delegation reiterated that government could not terminate boycott without ex- penditure of money which they had not got. Boycott was direct outcome of Shameen incident and if we did not accept responsibility for the shooting, the responsibility should be fixed by an international enquiry.

They developed this idea at a meeting on July 23rd when they presented following proposal in writi:y

Begins:- "The Chinese and British delegations have in their respective statements defined anti- British boycott issue in terms which now necessitate resort to an impartial commission of enquiry for its settlement. The Chinese delegation formally propose:-

(a) Such a commission of enquiry be con- stituted,

(b) The commission is to be made up of a Chineso and a British member with a chairman to be agreed upon, whose country is not directly involved in the

dispute.

(c) The commission shall be empowered to de-

termine question of responsibility for Shameen Shakes

shooting on June 23rd, 1925, and to make recommenda-

tions for complete and final settlement of resulting

anti-British boycott in Liangkuang.

(a) The Nationalist government and British

(including Hongkong) government agree to be bound

by

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