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and involve in the case of each of those conflicting interests. But it seems to me that no such conflict exists in the present case; and, after full and careful consideration, I am convinced that what is undoubtedly the best policy for Hongkong would also be the best policy for British interests in China generally.
4.
It appears to me to be an imperative and urgent necessity that we should face the facts as they arist to-day. The longer we refuse to face them the lower will British prestige fall, not only in China. but throughout Asia, and the more will Bolshevik in- fluence increase and Bolshevik intrigues prosper. It must not be forgotten that prestige is the principal means whereby a few thousand Englishmen maintain them- selves amidst the hundreds of millions who inhabit China.
5.
Ene of the facts which we must face is that there is no longer any central government of China. It is no mere sudden and temporary collapse of the central administration, for events were marching for years to this end; and the prospects of the restoration of any central administration now appear to be very remote. With the disappearance of the central government the whole edifice of the Washington Treaties, and of the older treaties, is shaken to its foundations, and it would be impossible at present to conclude the simplest new agreement with China as a unit and as a whole.
Another fact is that, in the case of the
6.
Liang Kuang provinces at least, no redress for any wrong or breach of treaty or agreement can be obtained except by favour of the local government. Redress cannot be obtained from any central government, because no such government exists, and, if it did exist, it could not
enforce