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this there camot and must not be any hesitation.
But is it wise or politic either to let the Cantonese know this, or to try and make them believe that we would defend by force a greater measure
of our existing rights and privileges in Chine? And would it not be sufficient for us to say to them, you may go so far but no further, for them at once to insist on going a step beyond the place where we call a halt?
It appears to us that in the present mood of the Cantonese government you would be far better advised to avoid any definitions or threats, to asuume as far as is possible that they are going In their side to be reasonable and do not intend to attack such vital interests as the foreign con- cessions and settlements or the whole extraterri- torial system at once, end so endeavour to arrive at a friendly understanding with them, based on a reasonable and equitable recognition of existing facts of the situation on both sides and of the necessity to arrive at a practical and workable arrangement for the maintenance and development of our trade and other relations with as little friction &E possible.
Repeat Peking, Canton, Hongkong, Tokyo and
Shanghai.
PO
A