3.

123

By this method we should as it were drift into

recognition. I do not profess to have thought this

out properly but at the moment it seems a possible line of aproach. I am becoming clearer every day (1) that some sort of recognition of South whether

express or otherwise is inevitable if our traders are

to carry on their business, and if that is so it should come voluntarily and not be extorted from us: (2) that the longer we wait, the less tractable will

they be. Should we not be wise then to take the

Bis dat qui

plunge at the earliest possible monent?

cito dat applies with special force in case of the South, where no one so far has given anything at all.

Whilst my visit to Hankow has somewhat re- assured me as to danger of immediate unilateral cancellation of treaties by Centon government, spoke of it several times and with special emphasis, as being probable policy of Nationalist party and certainly of many of his colleagues unless we hurried up.

Chen

rl.

ade

He personally realised danger of this course but required something more than words from us to show that we were in earnest. It is to some extent with this in mind that I have ventured the above appreciation. In view of our great mercantile interests out here, especially on the Yangtze, we must be careful not to miss our market and my feeling is that we may almost at once have to make up our minds to take a decision. Meanwhile I trust study of treaty revision contemplated at home (see your telegram No. 15) may be pushed forward with the utmost speed, Things happen very rapidly out here,

To

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