settlement.

The terms of reference must be not only judicial

but must include the question of arbitration. The judicial 371 temperament is eminently suited to the settlement of political questions. It will be able to weigh evidence and exclude gossip

and so forth.

le. MR. KEMP's point of the continuation of the boycott: this seems inevitable. If the British delegation require an immediate resumption of normal relations we say that

they must share our burden. They decline to do this and it is a "chose jugée".

The course now taken by the Conference leads inevitably to a breakdown and to indefinite prolongation of the boycott. Our suggestion at least puts a positive period to the boycott. We have suggested a means of settlement, though it may

take time, and we have made suggestions at our last meeting which will even avoid delay. But they involve the payment

of money and the British delegation refuses to consider that.

I wish again to emphasise that a settlement must involve

the payment of money. The British dulogation says that they

cannot possibly pay.

Doos that involve an indefinite

continuation of the boycott? We answer "No". Our Enquiry

Suggustion is a practical solution of the difficulty, though

a dulay is inevitable.

I wish categorically to affirm that the Chinese delegation

desire to expedite the settlement of the boycott but we have

no money.

MR. KEMP: Probably I did not make myself sufficiently

clear. I had two points. One was that the members of the

tribunal might be eminently qualified to ascertain the facts, but they might not be so well-qualified to deal with the

political and economic considerations. The other point was

that the tribunal would not have the relevant political and

coonomic facts before it unless they were put in evidence,

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