#

17969

16324

Hep banki

526

disruption in the Canton Gowerment and of attack by hostile Chinese War Lords. We would then be left with an embarrassing acceptance of the enquiry proposal, although the boycott might have been lifted quite irrespectively of our negotiations with the present Canton Government; and it might serve the purpose of the new Canton Government to hold us to our acceptance of the enquiry. Mr. Brenan does not consider this forecast likely. He thinks that the Canton Goverment would probably reply without undue delay refusing our offer and that, therefore, there would be tactical advantage in sending an answer soon. But I confess that I have much misgiving on this matter,

6.

I must also point out, if that the action against strike pickets contemplated in my secret despatch of the 22nd August, proves to be effective and resulta in a gradual breaking down of the anti-British boycott in Kuany-tung, the we may be able by degrees to work & way out of our present difficulties on other lines than those followed in the boycott negotiations at Canton. I have little hope anyhow that negotiations will end the boysott. As I have frequently pointed out, the boycott can only be ended either by internal disruption in Kunag- tung, or by the conquest of Kuang-tung by a hostile Chinese War Lord, or by aggressive action taken by ourselves, if possible in co-operation with the United States of America, Japan and France.

7.

The Canton Government has not hitherto pressed for a reply in connection with the boycott negotiations.

8.

This despatch confirms and amplifies my

telegram of yesterday's date.

I have the honour to be,

sir.

Your most obedient humble servant,

Eftements

Governor, &c.

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