so far as the Canton Government is concerned

the position has materially altered since the

Hate of Mr. Teichman'a memorandum. In the first

place that Government is now fevorted to control

no less than five of the eighteen provinces of

China and to have a foothold in at least four

othere, and secondly there is no longer any question

of His Majesty's Government taking the initiative in

the matter of recognition since the Canton Government

hes demended to be recommise as the national Govern-

rent of Ching and has declined to enter into diplo-

matic relations with the Powers until such recognition

has been accorded to it.

5.

While it seems clear that the rosition and

influence of the Canton Government are not at present

such as to warrant the grant of it of national recogni-

tion, it may at any moment become desirable, if not

essentiel, that agreement should be reached for

of this nature,

however this may be

it seems clear that the prospects of

arriving at a settlement of the present

anti-British and anti-treaty agitation

330

from the effects of which British trade

in China generally, and the Colony of

Hong Kong in particular, are suffering

so acutely, are dependent on the

negotiation of some arrangement which

will satisfy the aspirations of the

Canton Government with regard to recos-

nition during the period until, i" ever,

it is able properly to claim recognition

12.J

as the Government of China.

4.

In this onection I am to

transmit to you, to be laid before

Secretary Sir Austen Chamberlain, the

enclosed copy of further despatch

!

According it independent recognition in respect

of the area of which it is actually in control. It

has not yet been established that the Cantone se

would wish to lend themselves to a compromise

from Sir C. Clementi, urging the

desirability of granting de jure

recognition to the Canton Government, and

nition

to

of

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