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Moreover affect of such a note would be much diminished if Sir James Jamieson's recall were to follow immediately after ita presentation and, on supposition that hope is still entertained that a more moderate element may emerge at Canton with whom it may be possible to reach settlement by negotiation, the presentation of such a note would seriously embarrass the new Acting Consul General and if it was left to him to address it to local government would surely prove very inauspicious beginning for his mission,

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All things considered therefore, I would venture to recommend that question of presentation of note should be left over until Mr. Brenan reaches Canton and is able to judge how situation is developing. should, I think, be instructed to keep the note of proposal about offering a loan for railway construction and visit of the #illingdon committee in reserve to be used if and when expedient.

In the meantime events are moving fast in northern China with collapse of Kuo Mẫn Chun forces and growth of a strong anti-Bolshevik feeling which It appears to be having a repercussion in Canton. seems therefore all the more desirable that we should proceed very cautiously as our policy towards the Cantonese government in question of demand for com- pensation, railway loans, etc., must be largely governed by future relations between that government and new Central goverment which will be established in Peking as a result of the present hostilities.

Addressed to Foreign Office No. 129, repeated

to Hong Kong.

(M.21.)

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