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October 10th the Canton Government seeks refuge in excuses, We were not even asked to agree to their taxation proposals. and this will strengthen our hands in maintaining that increased taxation is their own affair.
Please see Foreign Office telegram to Peking No. 272 of today's date which is being repeated to you.
After full discussion with the Foreign Office I have agreed in the circumstances that we should confine ourselves for the moment to the procedure there set out. Close consideration has been given to the forcible measures which could be taken if necessity arose. Please see Foreign Office telegram to Peking No. 270 of the 20th September. In present circumstances the blockade must be considered out of the question for the reason stated. In view of international complications with Russia Foreign Office consider impracticable action against Chinese and Russians alone. The possibility of coercive action is thus reduced to measures (short of a blockade) which would be directed against Chinese alone.
Further investigations are being made with a view to certaining how far such action and especially measures recommended by Commodore Hong Kong would be practicable. I will telegraph further when these investigations have been completed but in the meantime it appears (1) that prior evacuation of both Shameen and Swatow would in any event be insisted on by the Naval and Kilitary authorities here. (2) That Naval Commander-in-Chief does not agree that the proposals of Commodore Hong Kong are practicable.
AMERY.