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advise them as a friend how the Hongkong Government viewed the situation and how, in my opinion, the outside world would view it. Mr. Wong Ching-wai said that they would consider very carefully whether some way could not be found out of the impasse, and we would resume the discussion in the evening. I then returned to Shameen, informed the Consul-General of what had transpired, and telegraphed to
the Governor.
On thinking the matter over further, a suspicion deepened in my mind that the political terms difficulty was a bluff engineered by Mr. C. C. Wu, and, as we left for dinner, I suggested to the Vice-Consul that this was the case. We dined with Mr. Foo Ping-sheung and Mr. Wong Cheung -kuk at the Foreign Office, the same party, with the exception of Mr. Wong Ching-wai, being present.
Mr. C. C.
Wu came at once to business. They had found a way round. the impasse. The Government would be able to persuade the strikers to waive the political terms but a formula would be necessary. I replied that in that event I would stay on and get this formula definitely settled. Mr. Wu said it would take some time and it would be better for the
merchants to come and discuss the crucial questions of
reinstatement and strike pay. I said that I must know the
terms of the formula first. The Hongkong Gov ernment could not allow the merchants to enter upon protracted negotiati- ons, if at the end a formula was to be put forward to which the Hongkong Government could not agree. Mr. Wu than gave me to understand that the matter depended upon the settle- ment with the merchants. If this was satisfactory, there would be no necessity for a formula, but the strikers
would not abandon any part of their position until they
were sure of their main point. We then proceeded to define
the position. I pointed out that on Mr. Sung's original
argument