This Document is the Property of His Britannic Majesty's Government, and should be

returned to the Foreign Office if not required for official use.]

Decypher.

Mr. Lampson.

(Siakwan).

D.

7.30 p.m.

E. 10.30 p.m.

December 22nd, 1926.

December 22nd, 1926,

December 22nd, 1926.

No. 28.

121

My preceding telegrams have given general purport

of my conversations with Chen and I propose in this

telegram to give appreciation of situation as I so far

see it.

My general feeling is that Chen personally has no particular animosity to us but: (a) he is not e strong

man and it is too early to judge.

(b) He realises fully weakness of our position vis-à-vis labour agitation etc., and is prepared to

use weapon to drive a hard bargain with us. (c) At

the same time he realised, what I gather from his own

statement his more extreme colleagues do not,

danger of letting things go too far and getting out of

control and the advantages of reaching some early

settlement with us,

I accordingly deduce from above that he genuinely

desires to settle with us, hence his anxiety late on December 17th (see my telegram No. 25) that by no

word or deed should there be the slightest suggestion

that our conversations would not continue. But

whether he could ever bring himself or his colleagues

to offer aven reasonable terms from our point of view

is very doubtful. Anyhow a hopeful sign to my mind is that he wants to go on talking to us, and I think

we should encourage this as much as possible. Even

if

ade

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