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Times July 26

Morning

July 2.6

321

THE HONG-KONG BOYCOTT. CANTON DELEGATES' PROPOSAL (FROM OUR CORRESPONDENT.)

HONG-KONG, JULY 25.

The leading Hong-kong delegates to the conference at Canton for the settle. meat of the boycott have returned here in order to receive further instructions.

The full text of the official con muniqués, which have now been re ceived, show that the Canton delegates first stated the official attitude towards the boycott, which, they claimed, was entirely justified by the patriotic move-j ment in China. The British delegation,' while deprecating recrimination, replied that the boycott was not a popular movement but imposed upon an unwilling people by a small but powerful organiza tion which did not hesitate to use force- It indignantly protested against un- scrupulous propaganda designed to throw all the blame upon the British.

Canton proposed that, in view of the wide difference of opinion in regard to the shooting at Shameen on June 23, 1925, an international commission should be appointed to adjudge responsibility, Alternatively it proposed that the financial burden, which an immediate settlement would entail, should fall equally upon the Canton and British Governments, which meant compensation for the rela- tives of the Chinese who were shot at Shakes Street opposite Shameen and the strikers.

The British delegation pointed out that the lapse of time since the shooting would make the inquiry of no value, even if the cooperation of the other Fowers could be secured. More. over, it would postpone a settlement of the boycott possibly for year. The Canton delegates pressed for a refwepes of this pro- posal to the British Government, and the British delegation agreed.

The British then suggested the Immediate settlement by means of an industria? loan of the p development of the Whampoa Port [Canton), conditional upon the construction at the same thee of a loop line conneethg the Kowloon- Canton and the Canton-Banków tailways (the Cantons Hankow railway is not yet completed with adequate safeguards for proper expendi Sure and payment of interest and redemption. The amount suggested was $10,000,000 [#1,200,0001 The Canton communiqué skya the British stipulated that the Chief Engineer and Accountant should do British as on the Canton-Kowloos rallway. As an alternative, the British delegation expressed. Its readiness to consider other enterprises, such as a railway to Biss Bay or to Swalow. The Chinese asked for time to consider the proposal.

It is locally exprated that the loan offer will be accepted.

CANTON FARCE

Loan for Trampling on Treaty Rights

CONDONING VIOLENCE

From Our Own Correspondent TIENTSIN, July 25.

As predicted in my message of June 22, Canton has demanded an indemnity for the privilege of trampling on British treaty rights for about a year. alternative British proposal of an ind115- trial loan is a ludicrous concession to lawlessness.

The

The suggestion that the loan be utilised for railways on the basis of the Canton-Kowloon railway

agreement necessitates the reminder that this loan was defaulted by the December terms of agreement, which have been grossly vio- lated, and there is no reason to suppose the Canton Government will honour any future obligations unless it temporarily suits them. Moreover, any loan agree ment at this juncture would be regarded as an unfriendly act by Chang Tao-tin and Wn Pei-fu.

British opinion is almost unanimous thef the proper settlement for Canton is to demand fulfilment of treaties and to enforce fallment if necessary by refusing by loan or otherwise to condone the long series of Loutrages. It is clear that having now em- barked on the long advertised Northern Hanan campaign, the Canton Government is desperately anxious to terminate the boy- cott, wherefore firmness by Britain is essen- tial.

THE ADJOURNMENT Chinese Proposals for Shameen Inquiry

CANTON, July 25.

The Conference which has been held here for the settlement of the anti-British boy- cott has adjourned sine die pending refer- ence to the British Government to appoint an International Committee to inquire into the details of the shooting affair which took place in the Shaki creek in the Shameen quarter on June 28 last year, and reference by the Chinese delegation to the Canton Government regarding the proposed British Ican,

The Chinese delegation on July 21 pro- posed the holding of an impartial inter- national inquiry and also that i loạn should be raised, partly in Canton and partly in Hong-Kong, to meet the financial burden involved in the settlement the Hong-Kong part only to be repaid if the Court decided in favour of the British.

FINANCING INDUSTRY

The British delegates stated that they were prepared to agree to a settlement in the form of an indusrial loan for the de- velopment of the port of Whampoa (Can- ton), conditional on the building of a loop! line connecting the Canton-Hankow and Canton-Kowloon railways; with a provision for the employment of a British Engineer in-Chief and Chief Accountant. The British delegates intimated that they were ready to consider alternative industrial enterprises. The Chinese delegation replied that they must refer the matter to the Canton Government.

The Chinese on July 23 suggested ■ Court of Inquiry to consist of one Chinese and one British member, with a Chairman to be agreed upon by both parties whose country should not be directly involved in the dis. pate. The Court would be empowered to determine the question of responsibility and make recommendations for a fitial settle- ment, and boil Governments would be bound by its findings, and must enforce all ita recommendations Rexter.

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