A
523
6
on foreign vessels on the river, but on the whole the Cantonese forces showed themselves well disciplined and well behaved. The Cantonese forces are now engaged with those of Sun Chuan-fang, who holds the region surrounding Shanghai.
The next development was the announcement by the Cantonese Government, in a note to His Majesty's acting consul-general of the 18th September, that they proposed to terminate the Hong Kong boycott on or before the 10th October. They also stated that the proper Chinese authorities would levy a special consumption tax of 24 per cent. on ordinary imports and 5 per cent. on imported luxuries, together with a special production tax of 2 per cent, on exports. The customs authorities would be asked to assist in the collection of these taxes. It was explained verbally to His Majesty's acting consul-general that the proceeds of these taxes would be used to liquidate the boycott organisation and that the taxes would be levied on the goods of all nationals. The promised declaration of the termination of the boycott and blockade was issued on the 10th October, not by the Canton Government itself, but by the Strike Committee and the Central Executive Committee of the Kuomintang.
The decision of the Cantonese Government to terminate the boycott was probably due
1. To the effect of the action of the British naval forces in Canton harbour on
the 4th September and apprehension of further more drastic action;
2. To need of money for their northern campaign;
3. To desire to secure their rear by a settlement with His Majesty's Govern-
ment.
The following is the answer to these questions given by the second Legal Adviser to the Foreign Office:—
"Article 1 (1) of the General China Treaty is really in the nature of a self-denying ordinance, and its object was to exclude operations like the Japanese occupation of Shantung. If Canton were to set up as an independent State by agreement with China, there is, in my opinion, nothing in the article in question which would prevent the signatories from recog nising the new State; and further, if, without the consent of the Central Government, Canton broke away and succeeded in establishing itself as an independent State in circumstances which, apart from the treaty, would entitle it to recognition by other States, I think the position would be the sane. On the other hand, I think the article does debar the signatories from encouraging separatist movements in Chinese provinces, or from anything in the nature of premature recognition of a rebellious Government as an independent State; otherwise it would be open to any signatory to get round the effect of the article by assisting the rebellious province to establish its independence.
"Further, all that the article obliges the signatories to do is to respect the sovereignty, independence and territorial and administrative integrity of China, and if these things do not exist it is not possible to respect them; therefore, if China broke up into a lot of mutually independent fragments, the signatories could not be precluded from recognising the situation thus
created."
The principal members of the Cantonese Government have recently proceeded orthward to Wuchang to organise the administration of the conquered territories, nd the Foreign Office have suggested to Sir R. Macleay that he should send a The greatest credit is due to Mr. J. F. Brenan, His Majesty's acting consul-ecretary there to establish personal contact with them and to discuss with them general at Canton, for the resourceful handling of the situation. He established formally the question of their future relations with His Majesty's Government. personal relations with the Cantonese Government and played on their fears at at the same time, His Majesty's Consul-General at Hankow (which is across the the critical moment, and they in their turn were only too glad to play on the fears Yang-tsze from Wuchang) has been informed that as soon as a Kuomintang of the strikers, who allowed themselves to be bought off at an easy rate.
Government is in a position which entitles it to claim to be the Government of As a result of the calling off of the boycott passenger traffic between Honghina and to assume full responsibility for the treaty and other obligations of its Kong and Canton has reached almost normal proportions. Goods traffic was also redecessor. His Majesty's Government will be prepared to recognise such a resuined in small measure and slowly improved. It has lately, however, suffered overnment as the Government of China. a set-back as the result of the recrudescence of the anti-British campaign by the His Majesty's Government would not, however, be justified in withdrawing boycott organisation and owing to their threats of intimidation, the shipping cognition from Peking in favour of Canton unless they were satisfied that companies are also having trouble with the labour unions.
The position as regards the boycott is, however, on the whole fairly favourable, and it is hoped that the Cantonese authorities will do their utmost to remove existing obstructions to the development of British trade. Mr. Brenan has been authorised to intimate to the Contonese authorities that we are prepared to give sympathetic consideration to any reasonable proposals the Cantonese authorities may make in exchange for fair and considerate treatment of British interests by those authorities, and that we desire that the Cantonese authorities should realise that if they adopt an unreasonable attitude they will only create friction and impede the achievement of their own projects.
III.-The Question of the Recognition of the Southern Government.
ther-
(1.) Canton had effectively established its authority over the whole of China
and had, in fact, become the Government of that country; or (2.) That it was exercising authority over a portion of territory which had established its independence of the rest of China and was entitled to recognition as an independent State.
The facts at present do not justify (1) though they may perhaps justify (2), ut Canton has so far not made any claim to be recognised as the Government herely of part of China and it is not for His Majesty's Government to volunteer ny such recognition.
It is understood that both the Japanese and the United States Governments re carefully examining the question of the status of the Cantonese Government The extension of the control of the Southern Government over a considerable ith a view to deciding what relations they ought to establish with it. The part of China has brought the question of their recognition to the forefront. It United States Minister at Peking has recently made a tour of the country, visiting has recently been stated in reply to a question in the House that His Majesty's anton, while the Japanese are sending an official of their Ministry for Foreign Government recognise and deal with the Chinese authorities at Canton as affairs on a similar tour, and it is reported that an emissary from the Nationalist local administration and that any further step would have to be most carefullyovernment will shortly proceed to Japan in this connection. considered by His Majesty's Government, having regard to their treaty obligations. the facts of the case, and the desires of the Chinese themselves.
By article 1 of the Nine-Power Treaty, signed at Washington on the 6th February, 1922, the contracting Powers, other than China, agree to respect the sovereignty, the independence and the territorial and administrative integrity of
China.
The question therefore arises whether this undertaking means that we have bound ourselves to uphold the unity of China; whether, for example, if Canton definitely broke away and started a republic of South China, we are debarred by the treaty from recognising the new State.
IV. The Wanhsien Incident.
The Upper Yang-tsze from Ichang to Chungking was opened to steain It was not, however, until 1909 arigation by the Treaty of Shimonoseki, 1895. hat the first merchant steamer established itself on this run, and British hipping did not become a serious factor in the situation until 1919. The advent
* Sir R. Macleay has now advised against the adoption of this suggestion.