(c) Provided Admiral Li (who has 4 cruisers at his

disposal) will undertake (1) to patrol the mouth of the West

River and the Hainan Strait and (2) to take action against

Chinese pirates, we favour the grant of assistance to the

Chinese Navy. This subject is dealt with in my telegrams

190/66676626

154810-01

of the 6th of December and 19th of January and in my despatch

43

49489

of the 20th of January, (Secret) and your telegram of the 30th

of January.

not yet rech

(D) The suggestion that pressure should be brought to bear

at Moscow. In our opinion the expulsion of the Bolsheviks

from Canton is an essential preliminary to a permanent settle-

ment. The possibility of the effective steps taken in 1923

(in regard to trawlers etc.) being repeated should be

considered. If this were possible it might provide the

solution of the Kuang Tung troubles without the use of force

and without antagonising the Chinese.

(E) The question of conciliation. CE

70%

C 2243

See enclosure 7 f in Governor's

Confidential despatch of 2nd October, for the demands of

Canton.

The only body in Canton with which my Government can

negotiate is the Government of Canton. Apart from Canton

workmen (with whom the Colonial Government has no concern)

the Strike Committee consists of former Hongkong workmen

(whose return we do not desire since the Colony is better off

without them). The advisers of the Committee are Red

Russians. The Colonial Government cannot possibly conduct

negotiations with such a body. If such negotiations were

begun our prestige would suffer to such an extent that the

future good Government of the Colony would be imperilled.

Furthermore a very detrimental effect would be produced

on British interests in Shanghai if the Kuang Tung anti-

British boycott were to end in the humiliation of the

Colony

6

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