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316
Pending & reply from the latter, conference is ad- journed. Our suggestion that boycott should be lifted as soon as enquiry was accepted in principle was rejected. Hongkong delegates returned to HougkON
to-day.
We think the truth is that Canton goverment are not willing to settle without cash payment and have adopted this method of suspending negotiations. Also, they may be playing for delay because their military operations in Huzar have recently been successful and they hope soon to establish them- selves on the Yangtse and increase their hold on the country, when they will be in a still stronger position to negotiate.
Addressed to Foreign Office No.32.
Copy to Hongkong.