4
15
120
meantime Nationalist government obtained successes
which Chen so confidently predicted and became in fact the one and only government of China it would remove one of the main obstacles in the way of any negotiations.
Chen in this and other interviews laid great stress on fact that his government could influence labour but could not repress it with an iron hand whers Nationalist aspirations were concerned and indicated that if an impression got abroad that our negotiations had failed local situation would immediately take a turn for the worse. He has also again and again asked me to remember that his government have very real in- ternal difficulties of their own to face, I took open- ing he gave me on this point to say that while I had not been instructed to make a communication to him my own personal impression was that His Majesty's Govern- ment will be undoubtedly greatly influenced in their attitude towards all this question by two things, (a) degree to which Nationalist government make good in Hankow and any other territory now under or in future under their control, and (b) by degree to which they can control anti-Eritish agitation. This wording I had prepared in advance and read to him twice.
Conversation then turned to questions of issuing a statement regarding our meeting and of surtaxas which has been reported separetoly.
Whole series of conversations has been carried on in thoroughly friendly spirit. I am not yet clear in my mind as to net result but proposa to address you on the subject before I leave the Yangtze and became (gr. undec.) atmosphere of the north.
Addressed to Foreign Office Nos. vnd 27. Sent to Peking, Tokyo, Shanghai and Hongkong for Canton and (? Commander-in-Chief).