bel. 2.......

unprofitableness to themselves of continuing to resist the inevitable and will accordingly be

willing to accept the terms imposed on them by the Nationalist Party. In other words it is a case

128

of the Canton-Hongkong scheme of 1925-26

being applied in Shanghai, the objective con

this occasion being the almost immediate abr¬gation

of so-called unequal treaties, the abolition of

Extrality and the rendition of all ferdign-controlled »

4.

In my opinion this is a just appreciation

of the situation and it is strikingly corroborated

by the attached report of an interview, given by

General Cheung Kai-shek at his headquarters to a foreign newspaper correspondent and published on the 24th November, General Cheung is reported to have

said that "after the successful termination of the

revolution all foreign treaties would instantly be abrogated and the foreign supervision of the Customs, the Post Office and the Salt Gabelle abolished.”

5. In view of this pronounomment I am confirmed in the opinion which I have already had the honour to lay before you that the Bolshevised. Canton Soviet will of set purpose ignore and defy treaties upto the point at which it meets with foreible resistance. It is, therefore, of the utmost importance that the Treaty Powera should without delay decide what treaty

For rights they are prepared to defend by force. exmple as regards Great Britain I presume that the Treaty of Nanking which is the title-deed of the

Colony

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